IPO: NSDL Gets SEBI Nod; NSE, SBI, HDFC Bank To Sell Shares
Moneylife Digital Team 08 October 2024
The Securities and Exchange Board of India (SEBI) has granted approval for the initial public offering (IPO) of National Securities Depository Ltd (NSDL), the country's largest depository.
 
NSDL IPO will be structured as a pure offer for sale (OFS), involving the divestment of 57.3mn (million) equity shares by six key shareholders. IDBI Bank will offer up to 2.22mn shares, while the National Stock Exchange (NSE) will sell 18mn shares. Union Bank of India plans to divest 5.62mn shares, and State Bank of India (SBI) will offer up to 4mn shares. The administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) will sell 3.4mn shares, and HDFC Bank will also participate in the OFS. Current shareholding patterns show IDBI Bank holding a 26% stake, NSE with 24%, SBI at 5%, Union Bank of India at 2.8%, and Canara Bank at 2.3%.
 
NSDL filed its draft red herring prospectus (DRHP) with SEBI on 7 July 2023. In August 2023, SEBI temporarily placed the DRHP on hold, a standard procedure when there are ongoing investigations or delays in information provision. The recent approval signifies the resolution of any pending issues. 
 
Established in August 1996, NSDL has played a pivotal role in modernising India's securities market. It pioneered the dematerialisation of securities in India, addressing longstanding issues such as bad delivery and delayed transfer of title in the paper-based settlement system. NSDL offers a wide range of products and services to various stakeholders in the financial and securities markets. It maintains its position as the largest depository in India, based on the number of issuers, active instruments, market share in demat value of settlement volume, and value of assets held under custody.
 
Upon listing, NSDL will become the second depository services company to trade on domestic exchanges, following Central Depository Services Ltd (CDSL) debut in 2017. 
 
The book-running lead managers for the NSDL IPO include ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), IDBI Capital Markets and Securities Ltd, Motilal Oswal Investment Advisors Ltd, and SBI Capital Markets Ltd. The company's shares are proposed to be listed on the Bombay Stock Exchange (BSE).
 
This IPO represents a significant development in India's financial sector, offering investors an opportunity to participate in the growth of a key market infrastructure institution.
 
Comments
prakash.k
3 weeks ago
Awesome they did good. Irctc was the biggest railway stock IPO and train vacancy chart is new feature they implemented. Good time to catch some
prakash.k
Replied to prakash.k comment 3 weeks ago
sorry wrong post chosen, i was typing in railway budget one... my bad
Easier To Replace than Reform Audit – Part 5
Ranganathan V, 08 October 2024
Financial fraud can be classified into a few conventional models. 
 
The one prevalent in the days when the stock market valuation was not the driving reason and when the tax rates were high was inflating the expenses and/or...
Ola Electric Gets Notice from Consumer Protection Authority on Misleading Ads, Unfair Trade Practices
Moneylife Digital Team 08 October 2024
Amidst rising complaints and share price drops, Ola Electric Mobility Ltd has received a show-cause notice (SCN) from the central consumer protection authority (CCPA) due to increased consumer complaints. The SCN cites alleged...
RBI Imposes Over Rs10 Lakh Penalty on 4 Cooperative Banks from Maharashtra, 1 from Odisha
Moneylife Digital Team 08 October 2024
Reserve Bank of India (RBI) has imposed a penalty of Rs10.10 lakh on four cooperative banks from Maharashtra and one from Odisha for non-compliance with the directions issued by the banking regulator. The highest penalty of Rs3 lakh...
Does SEBI Loophole Allow Exercising ESOPs during Window Trading Period?
Moneylife Digital Team 07 October 2024
Amidst the controversy of Madhabi Puri Buch, chairperson of the Securities & Exchange Board of India (SEBI), earning money from employee stock ownership plan (ESOP) proceeds and her denial of this, Dr Nanda Kumar from Cochin pointed...
Array
Free Helpline
Legal Credit
Feedback