The big question that is doing the rounds is when NSDL will launch its initial public offer (IPO). India’s biggest depository, NSDL’s IPO, is one of the most anticipated ones, and what further adds to the drama is the listing deadline set by SEBI as per the addendum filed by NSDL.
“SEBI in-principle approval requires us to complete the listing process before April 13, 2024, which has been extended till July 31, 2025. If we fail to comply with this deadline, we may be required to apply for an extension or a fresh approval, which may not be granted in a timely manner, or at all,” said NSDL in its Addendum to Draft Red Herring Prospectus (DRHP).
The question now is, will NSDL stick to the July 31 listing deadline or ask for further extension?
NSDL IPO: SEBI’s in-principle approval
The markets watchdog approved the listing of NSDL on April 13, 2023 and has directed the company to complete the entire listing process within one year from the date of issuance of the in-principle approval, i.e. before April 13, 2024.
SEBI, through its letter dated April 13, 2023, had granted us the in-principle approval to list our Equity shares on a recognised stock exchange, subject to certain conditions, including compliance with the provisions of the SEBI D&P Regulations and the shareholding norms prescribed therein…,” read the same document.
NSDL IPO on the radar: Co gets extension till July 31, 2025
NSDL reached out to SEBI for extension of listing by July 31, 2025, which was granted to it on March 28, 2025. “Our failure to comply with any of these conditions may require us to apply for an extension or a fresh approval from SEBI. This may not be granted to us in a timely manner, or at all,” said the document.
NSDL IPO: What’s causing the delay?
IDBI Bank and National Stock Exchange of India (NSE) are yet to dilute their stake to a permissible limit in NSDL. To comply with that requirement, both shareholders asked for an extension of time, which led to a delay in the listing of NSDL.
According to a rule of SEBI, any shareholding or voting rights in a company engaged in the depository business beyond 15% should be brought down to the specified limit within a period of five years from the start of SEBI D&P Regulations, which is October 2, 2023.
However, IDBI Bank and NSE of India currently hold 26.10% and 24% in NSDL. Therefore, both shareholders are required to mandatorily dilute their stakes in order to comply.
“Pursuant to its letter dated March 28, 2025, SEBI has inter alia extended the Dilution Deadline up to July 31, 2025 for our shareholders, IDBI Bank Limited and National Stock Exchange of India,” said NSDL in its Addendum to DRHP.