National Securities Depository (NSDL) is preparing to launch its much-awaited initial public offering (IPO) in July, as per a report by Bloomberg. The listing could raise around $400 million (Rs 3,421.6 crore), reports Bloomberg, citing people familiar with the matter.
The market regulator had already cleared the IPO in October last year. Now, with the internal processes speeding up, NSDL is getting ready to hit the market soon.
Largest depository to sell 50.1 million shares
NSDL is India’s largest depository by assets under custody. The upcoming IPO will include the sale of 50.1 million shares based on earlier filings made by the company to the stock exchanges.
The offering is being managed by ICICI Securities, Axis Capital, HSBC Holdings Plc, and IDBI Capital.
IDBI and NSE are the biggest shareholders
This IPO will be an offer for sale (OFS), meaning that existing shareholders will sell part of their stake. These include IDBI Bank, the National Stock Exchange of India (NSE), and State Bank of India (SBI). NSDL itself will not receive any money from the share sale.
Financial Express has earlier reported that IDBI Bank will be offloading up to 22.22 million equity shares. In total, IDBI Bank owns 26.10% of NSDL, making it the biggest shareholder of the company. NSE, the second-largest shareholder, will sell up to 18 million equity shares. The NSE owns 24% of the NSDL, or 48 million shares.
No comment from company officials
Vijay Chandok, the managing director and CEO of NSDL, declined to share details about the IPO timeline when contacted by Bloomberg. The company’s spokesperson also did not respond to calls by Bloomberg.
NSDL: Oldest and largest depository
NSDL is a SEBI-registered market infrastructure institution (MII). It is a pioneer in the dematerialisation of securities in Indian capital markets. It provides electronic infrastructure for the dematerialisation of securities and facilitates the electronic settlement of trades in the Indian securities market.
Over the last three financial years, the company’s total revenue has surged year-on-year. However, it must be noted that the contribution of depository services to the revenue hasn’t changed much. In FY24, the depository reported total revenue from operations of Rs 1,268.24 crore, out of which almost 37.3% of the revenue came from depository services. In FY23, NSDL’s total revenue from operations stood at Rs 1,021.93 crore, out of which revenue from depository services was 40% of the total revenue.