Mumbai: The Securities and Exchange Board of India (SEBI) has given the green light for the initial public offering (IPO) of the National Securities Depository Ltd (NSDL), India’s largest depository. This approval marks a significant milestone for NSDL, which has been a cornerstone of India’s securities market since its inception in 1996.
The IPO will be an offer for sale (OFS) of up to 5.72 crore shares, with several major stakeholders set to offload their shares. IDBI Bank, which holds a nearly 26% stake in NSDL, will sell up to 2.22 crore shares. The National Stock Exchange (NSE), holding a 24% stake, will sell up to 1.8 crore shares12.
Other significant stakeholders participating in the OFS include the State Bank of India (SBI), Union Bank of India (UBI), and Canara Bank. SBI will sell 40 lakh shares, UBI will offload 56.2 lakh shares, and Canara Bank will sell 34 lakh shares. Additionally, HDFC Bank, which holds an 8.95% stake, will sell a 2% stake in the company12.
The approval from SEBI came after the market watchdog issued an observation on September 30, 2024, indicating its go-ahead for the public issue. This observation is a crucial step in the IPO process, signifying that NSDL has met all regulatory requirements12.
NSDL’s IPO is expected to attract significant interest from investors, given its pivotal role in the Indian securities market. As of March 31, 2023, NSDL was the largest depository in India, measured by the number of issuers, active instruments, market share in demat settlement volume, and the value of assets held under custody12.
The proceeds from the IPO will provide liquidity to the selling shareholders and are expected to enhance the company’s visibility and market presence. This move aligns with the broader trend of financial institutions leveraging public markets to unlock value and raise capital.
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