The big-ticket National Securities Depository (NSDL) IPO plans to mop up Rs 4,011.60 crore from the primary markets with the issue launching today. The issue is entirely an offer for sale of 5.01 crore shares, which means the raised proceeds will go to the selling shareholders and not the company.
NSDL IPO: Price Band
NSDL has kept the price band in a range of Rs 760 to Rs 800 per equity share. The lot size for a retail application is 18. This means the retail investor will have to buy shares of Rs 13,680. The lot size investment for small NII is 14 lots of 252 shares, amounting to Rs 2 lakh, and for big NII, it is 70 lots of 1,260 shares, amounting to Rs 10 lakh.
NSDL IPO: Objectives of IPO
NSDL proposes to utilise the net proceeds from the issue towards achieving the benefits of listing the equity shares on the BSE. Additionally, the IPO is a SEBI-mandated requirement and not driven by a need for growth capital.
NSDL IPO: Allotment and listing
Investors can bid for the NSDL IPO from July 30, and the IPO closes on August 1. The allotment for the NSDL IPO is expected to be finalised on August 4. The issue is expected to be listed on BSE with a tentative listing date fixed as August 6.
NSDL IPO: Book manager and registrar
ICICI Securities is the book-running lead manager of the NSDL IPO, while MUFG Intime India Pvt Ltd (Link Intime) is the registrar for the issue.
Bajaj Broking on NSDL IPO
NSDL is engaged as a pioneer in depository services in India and is an ice breaker for the demat process. The company is expanding its horizon with more value-added services and options, said Bajaj Broking. For the last three fiscals, the company has posted an average EPS of Rs 15.13 and an average RoNW of 16.75%. If we attribute FY25 annualised earnings, the asking price is at a P/E of 46.62. Based on FY24 earnings, the P/E stands at 58.10.
Anand Rathi Research on NSDL IPO
“At the upper price band company is valued at a P/E of 46.6x to its FY25 earnings, and the market capitalisation of Rs 16,000 crore, with a Return on net worth of 17.1% post issue of equity shares. We believe that the IPO is fairly priced and recommend a ‘Subscribe’ rating to the IPO,” said Anand Rathi Research in an IPO note.
About NSDL
NSDL is a SEBI-registered market infrastructure institution (MII). It is a pioneer in the dematerialisation of securities in Indian capital markets. The company provides electronic infrastructure for the dematerialisation of securities and facilitates the electronic settlement of trades in the Indian securities market. NSDL was among the first few global depositories to directly implement dematerialisation. It bypassed the two-step immobilisation and subsequent dematerialisation process.