Upcoming IPO: SEBI approves the much awaited IPO of Rs 3000 crore

Upcoming IPO: Securities regulator SEBI has approved the long-awaited IPO for National Securities Depository Limited (NSDL), the Indian securities depository that handles most of the securities held in demat form in the Indian capital markets.

NSDL had filed its draft red herring prospectus (DRHP) on July 7, 2023, and it will be a pure OFS (offer for sale), with NSE and IDBI Bank planning to sell stakes. However, in August 2023, SEBI postponed the DRHP in August.

In its DRHP, the depository said that its six shareholders will sell a total of 57.3 million shares in the IPO. IDBI Bank will sell 22.2 million shares, while NSE will sell 18 million shares or 9 per cent of its stake in the depository. What is the preparation Union Bank of India will sell 5.62 million shares, and State Bank of India and Administrator of the Specified Undertaking of Unit Trust of India (SUUTI) will sell 4 million and 3.4 million shares, respectively. The sixth shareholder participating in the IPO is HDFC Bank. Shares of HDFC Bank rose over one per cent on October 8, even as the market remained volatile, and traded at Rs 1,636.6 per share on the NSE. The private lender will sell 2 per cent stake in this IPO and currently, it holds 8.95 per cent stake in the depository. Once listed, NSDL will become the second depository service company to be listed on the domestic stock markets, after the stellar market debut of Central Depository Services Ltd (CDSL) in 2017. Meanwhile, at 9.50 am, the share price of CDSL was trading over one per cent lower at Rs 1,355 per share.

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