The countdown has begun for India’s largest and oldest depository IPO. Moreover, the numbers are already making noise – not on the exchanges yet, but in the grey market.
After months of speculation and anticipation, National Securities Depository (NSDL) is finally heading to make its entry in Dalal Street. With the IPO opening on July 30, many might be curious to know how the shares of India’s oldest depository are priced unofficially ahead of listing.
What is driving the grey market premium (GMP)? What should investors not miss before the IPO opens? Here is a closer look at the numbers, timelines, and key factors to watch out for.
NSDL IPO: What is NSDL’s GMP indicating ahead of the opening of the issue?
Ahead of the official opening of the bidding, NSDL’s shares are already in demand in the unofficial market. As of the latest update available, the company’s grey market premium stands at around Rs 161 per share. With the IPO price band capped at Rs 800, this indicates a possible listing around Rs 961, a potential 20% upside.
It is important to note that GMPs offer a sneak peek into market sentiment, it is crucial to remember that they are unofficial and highly volatile. The actual listing could swing based on demand and market mood closer to debut.
NSDL IPO: The offer – What is NSDL bringing to the table?
NSDL’s IPO is pegged at Rs 4,011.60 crore and is entirely an offer-for-sale (OFS). This in simple terms means that the existing shareholders will be offloading 5.01 crore equity shares and no fresh capital will be raised by the company itself.
The price band is fixed between the range of Rs 760 to Rs 800 per share, and one lot includes 18 shares, making the minimum retail investment Rs 13,680. For high-net-worth individuals (HNIs), the small HNI (sNII) category starts from 252 shares (Rs 2,01,600), and the big HNI (bNII) slab is 1,260 shares (Rs 10,08,000).
NSDL IPO: Important dates to watch
The bidding for anchor investors in the NSDL IPO is scheduled to open on July 29. This portion is reserved for institutional investors and typically takes place a day prior to the public issue opens.
The IPO will be open for public bidding from July 30 to August 1. During this three-day window, retail investors, non-institutional investors (NIIs), and qualified institutional buyers (QIBs) can place their bids.
The allotment of shares is expected to be finalised on August 4, after which successful bidders will receive shares in their demat accounts.
The shares of NSDL are likely to make their debut on the BSE on August 6.
NSDL IPO: Who’s handling the IPO process?
The issue is being managed by ICICI Securities, the lead book-running manager. The registrar duties will be handled by MUFG Intime India(formerly Link Intime), which will process applications and handle share allotments.
NSDL IPO: From paper shares to digital vaults
The company was founded in 1996, and it is India’s first depository. It plays a key role in moving Indian markets away from physical share certificates. It offers a secure platform for holding and transferring financial securities electronically, from stocks and bonds to mutual fund units.
Operating out of Mumbai, the depository connects investors, custodians, and brokers through a large network of Depository Participants (DPs) and handles critical back-end processes such as settlements and corporate actions.