India’s oldest and largest depository, NSDL, is finally hitting the primary market with its much-awaited IPO – opening for bidding on July 30. But while the company is strong on fundamentals, recent indications from the grey market premium (GMP) have raised eyebrows. So, should you still go ahead and place your bid?
Here’s everything you need to know-
NSDL IPO: Grey market premium takes a breather
When NSDL announced its IPO date, excitement was high, and so was the GMP with shares trading at a premium of more than Rs 160, which was over 20% in the unofficial market. But as of now, the buzz seems to be cooling.
As of the latest update, the shares of NSDL are commanding a GMP of around Rs 135. This implies a potential listing price of Rs 935 which is about 17% higher than the upper end of the IPO price band.
However, it is important to keep in mind that the GMP is not an official indicator and can change sharply based on investor sentiment.
NSDL IPO structure: No fresh capital, only shareholder exit
NSDL’s Rs 4,011.60 crore IPO is a pure offer-for-sale (OFS). This means the company itself won’t be raising any new funds.
Instead, the IPO is an exit route for existing shareholders who are selling part of their stake.
In total, 5.01 crore equity shares will be offloaded by six existing shareholders. Here’s how the offer breaks down:
IDBI Bank: Selling up to 2.22 crore shares
National Stock Exchange (NSE): Offloading 1.80 crore shares
State Bank of India (SBI): Planning to sell 40 lakh shares
SUUTI (Specified Undertaking of the Unit Trust of India): Offering 34.15 lakh shares
HDFC Bank: Selling 20 lakh shares
Union Bank of India: Offloading 5 lakh shares
Each equity share in this IPO carries a face value of Rs 2.
NSDL IPO: Bidding timeline and lot size
The public bidding for NSDL shares opens on July 30 and closes on August 1. The allotment of shares will be finalised on August 4, and listing is expected on the BSE and NSE on August 6.
The price band of this mainboard issue is set between the range of Rs 760 to Rs 800 per share.
For the retail category, the minimum application requires one lot comprising 18 equity shares. This translates to an investment of Rs 13,680 at the upper price band.
On the other hand, for High Net-Worth Individuals (HNIs), the minimum thresholds differ based on the sub-category. This include-
The small HNI (sNII) segment starts from 252 shares, which amounts to Rs 2,01,600.
The large HNI (bNII) category begins at 1,260 shares, requiring an application size of Rs 10,08,000.
NSDL IPO: Who is behind the process?
The IPO is being led by ICICI Securities, with MUFG Intime India (formerly Link Intime) acting as the registrar. Anchor investors will bid a day earlier on July 29, setting the tone for the broader subscription.
NSDL IPO: India’s largest and the oldest depository
NSDL was set up in 1996 and plays a key role in shifting India’s capital markets from paper-based share certificates to digital records.
Headquartered in Mumbai, NSDL provides a platform for holding and transferring financial instruments such as equity shares, bonds, and mutual fund units in electronic form.
Its operations are supported through a wide network of depository participants (DPs), which help connect different players in the market – investors, brokers, custodians, and companies. NSDL also handles important processes like settlements and corporate actions.