NSDL files DRHP with SEBI for IPO; details inside

National Securities Depository Limited (NSDL), a SEBI-registered market infrastructure institution (MII) that provides a comprehensive array of financial and securities market products and services in India, has submitted its Draft Red Herring Prospectus to the Securities and Exchange Board of India (SEBI). 

The IPO will consist solely of an Offer for Sale, wherein up to 57,260,001 equity shares will be offered, having a face value of Rs 2 each. 

The offer for sale of equity shares comprises up to 22,220,000 Equity Shares by IDBI Bank Ltd, up to 18,000,001 Equity Shares by National Stock Exchange of India Ltd, up to 5,625,000 Equity Shares by Union Bank of India, up to 4,000,000 Equity Shares by State Bank of India, up to 4,000,000 Equity Shares by HDFC Bank Limited (SS), up to 3,415,000 Equity Shares by Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI). 

As per the DRHP, the equity shares being offered will be listed on the BSE.

The offer incorporates a provision for the allocation of equity shares for subscription by eligible employees, known as the “employee reservation portion.” The company, along with the selling shareholders and in consultation with the BRLMs (Book Running Lead Managers), may provide a discount on the offer price to eligible employees participating in the employee reservation portion, referred to as the “employee discount.” The part of the offer excluding the employee reservation portion is henceforth referred to as the “net offer.”  

If NSDL’s listing plans were executed successfully, it would become the second depository services company to be listed on domestic stock exchanges. This follows the successful market debut of its peer, Central Depository Services Limited (CDSL), in 2017. 

ICICI Securities Ltd, Axis Capital Ltd, HSBC Securities and Capital Markets (India) Private Ltd, IDBI Capital Markets & Securities Ltd, Motilal Oswal Investment Advisors Ltd, and SBI Capital Markets Ltd have been appointed as the Book Running Lead Managers for the issue. 

As per the company’s DRHP, as of March 31, 2023, the company claims to be the largest depository in India based on several key metrics. These include the number of issuers, active instruments, market share in demat value of settlement volume, and the value of assets held under custody. 

“As on March 31, 2023, The company had over 31.46 million active demat accounts held with 283 depository participants registered with them, and their accounts holders were located in more than 99% of pin codes in India and 186 countries across the world. Also, It had an aggregate of 40,987 issuers registered with the company, witnessed a net increase of 3,509 issuers registered with them during the Financial Year 2023. 

Furthermore, the average number of demat accounts opened with the company per day in financial Years 2021, 2022, and 2023 was 6,840, 15,528, and 15,139, respectively,” the DRHP said. 

NSDL was established in 1996 and is currently headed by its MD and CEO, Padmaja Chunduru. The organization offers a wide range of services to investors, stockbrokers, custodians, and issuer companies. These services are provided through their extensive network of Depository Partners operating across the country.