NSDL IPO opens July 30: Everything you need to know
What's the story
The National Securities Depository Limited (NSDL), India's oldest and largest securities depository, is gearing up for its initial public offering (IPO). The much-anticipated event will kick off on July 30 and conclude on August 1. The anchor book for the IPO will open a day earlier, on July 29. NSDL has fixed its price band at ₹760 to ₹800 per share, valuing the IPO at approximately ₹4,000 crore. Listing is expected to happen on August 6.
Shareholders
NSE, IDBI are largest shareholders in NSDL
The upcoming IPO will be an offer for sale of up to 5.01 crore equity shares by existing shareholders. Among them, IDBI Bank plans to sell up to 2.22 crore shares while the National Stock Exchange (NSE) intends to offload up to 1.8 crore shares. Other institutional shareholders include State Bank of India (SBI), HDFC Bank, Union Bank of India and the Administrator of Specified Undertaking of the Unit Trust of India (SUUTI).
Compliance
Monetizing investments and complying with regulations
The upcoming IPO is especially important for IDBI and NSE as they own 26.01% and 24% stakes in NSDL, respectively. Under SEBI rules, no single entity can hold over 15% in a market infrastructure institution. This public offering gives both these institutions a way to comply with the regulation while also monetizing their investments.
Financials
Leading depository in India
For the full fiscal year 2024-25, NSDL's net profit grew by 24.57% to ₹343 crore while its total income rose to ₹1,535 crore, a 12.41% increase over FY 2023-24. As of December 31, 2024, it is the leading depository in India by number of issuers and active instruments as well as market share in demat value of settlement volume and assets under custody. The company is targeting a valuation of around ₹16,000 crore with the IPO.