NSDL's Rs 4,000-crore offer for sale set to open next week

NSDL's Rs 4,000-crore offer for sale set to open next week.

Expert Analysis :

• IPO Details: NSDL’s Rs 4,000 crore primary share sale via the offer-for-sale route is expected to open for public subscription on July 30.

• Industry Positioning: NSDL, the oldest and leading depository player, will be the second listed depository after CDSL, which had a Rs 524 crore OFS in June 2017 that was oversubscribed 170 times.

• Valuation Target: Established in November 1996, NSDL is aiming for an IPO valuation of approximately Rs 16,000 crore at current price levels.

• Offer Structure: IPO includes sale of up to 50,145,001 shares by IDBI Bank, NSE, Union Bank, SBI, and UTI administrator.

• Shareholding Compliance and Leadership: IDBI Bank and NSE hold 26.01% and 24% in NSDL, exceeding SEBI’s 15% cap for market infrastructure institutions; the IPO enables stake dilution. NSDL has no identifiable promoter and is led by CEO Vijay Chandok, an ex-ICICI group veteran.

• Business Scale: As of Dec 2024, NSDL had 38.77 million demat accounts, 289 depository participants (DPs), 64,535 issuers, and 53,169 unlisted companies.

• Issue Managers: Book running lead managers include ICICI Securities, Axis Capital, HSBC, IDBI Capital, Motilal Oswal, and SBI Caps.