SEBI has approved the initial public offering (IPO) of National Securities Depository Limited (NSDL), which is great news for the Indian financial market because NSDL is the largest depository in the country. Many investors have been looking forward to this IPO.
NSDL is important in India’s financial system because it holds securities electronically, making buying and selling faster and easier. It started in 1996 as the first depository in India and has become a key player in the market.
The NSDL IPO will be an Offer for Sale (OFS), meaning that the shares will be sold by current investors rather than new shares being created. This gives existing shareholders a chance to sell their shares, while new investors can buy into a major company in the financial market. The IPO will offer about 5.72 crore shares to the public.
Several important stakeholders will sell shares in this IPO. IDBI Bank will sell 2.22 crore shares, the National Stock Exchange (NSE) will sell 1.80 crore shares, Union Bank of India will sell 56.25 lakh shares, SUUTI will sell 34.15 lakh shares, State Bank of India (SBI) will sell 40 lakh shares, and HDFC will also sell 40 lakh shares. This shows strong interest in NSDL.
NSDL submitted its Draft Red Herring Prospectus (DRHP) to SEBI in July 2023 but faced a delay in getting approval in August. After this delay, SEBI issued the approval letter on September 30, allowing the IPO to go ahead. Once it is listed, NSDL will be the second depository services company to go public in India, after Central Depository Services Limited (CDSL), which went public in 2017.
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