SEBI Greenlights NSDL IPO as HDFC Bank and Others Look to Sell Shares

The Securities and Exchange Board of India (Sebi) has given the green light for the initial public offering (IPO) of National Securities Depository Limited (NSDL), India’s largest depository. The IPO will involve an offer for sale (OFS) of 57,260,001 shares, with stakeholders including IDBI Bank, the National Stock Exchange (NSE), State Bank of India (SBI), HDFC Bank, and Union Bank of India reducing their stakes.

HDFC Bank plans to sell up to a 2% equity stake in NSDL as part of this offer. IDBI Bank holds a 26% stake in NSDL, while NSE owns 24%. Other stakeholders include SBI (5%), Union Bank of India (2.8%), and Canara Bank (2.3%).

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The OFS includes:

• IDBI Bank: 22,220,000 shares
• NSE: 18,000,001 shares
• Union Bank of India: 5,625,000 shares
• State Bank of India: Up to 4,000,000 shares

Additionally, there will be a reservation of shares for eligible employees.

NSDL provides various products and services to the financial and securities markets and was the first to offer dematerialization of securities in India after the Depositories Act was introduced in 1996. It is the largest depository in India based on the number of issuers, active instruments, and the market share of demat value and assets under custody. The shares will be listed on the BSE.

The book-running lead managers for the 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.