After months of speculation, the much-anticipated IPO of National Securities Depository Limited (NSDL) is finally hitting the Street. India’s oldest and largest depository, has finally revealed the dates for its much-anticipated initial public offering.

As per the red herring prospectus (RHP) filed with Sebi, the IPO will open for public subscription on July 30, and will close on August 1. The anchor investor portion, which is reserved for institutional investors, will open a day earlier, on July 29.

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This latest announcement comes after the market regulator Sebi granted NSDL an extension to list its shares by August 14.

NSDL IPO: OFS – No fresh shares, only stake offloading

A mainboard issue, the issue is entirely an Offer for Sale (OFS). This means that no fresh shares will be issued by the company. On the other hand, six existing shareholders will offload a total of 5.01 crore equity shares. The breakdown of the offer is as follows:

IDBI Bank – Up to 2.22 crore shares

National Stock Exchange (NSE) – Up to 1.80 crore shares

State Bank of India (SBI) – Up to 40 lakh shares

SUUTI (Specified Undertaking of the Unit Trust of India) – Up to 34.15 lakh shares

HDFC Bank – Up to 20 lakh shares

Union Bank of India – Up to 5 lakh shares

Each equity share carries a face value of Rs 2.

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NSDL IPO: Regulatory compliance driving the OFS

This share sale is not just about unlocking value. There is a regulatory reason behind it too. As per Sebi’s norms, no single entity is allowed to hold more than 15% in a Market Infrastructure Institution (MII).

As of now, IDBI Bank holds 26.01% in NSDL. In a similar note, NSE holds 24% in the company. So, with the opening of he public issue, it offers both institutions a chance to reduce their holdings and comply with the cap set by the market regulator.

NSDL IPO: Key players of the issue

A prominent players of investment banks has been appointed to manage the issue. The book-running lead managers for this offering include ICICI Securities, Axis Capital, HSBC Securities, IDBI Capital, Motilal Oswal, and SBI Capital Markets.