NSDL raises ₹1,201 crore from anchor investors ahead of IPO opening
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The National Securities Depository Ltd. (NSDL) mobilised over ₹1,201 crore from institutional investors on Tuesday, a day before its initial share-sale opening for public subscription.
This anchor portion witnessed participation from domestic and foreign institutional investors, including Life Insurance Corporation of India (LIC), Smallcap World Fund Inc, SBI Mutual Fund (MF), Fidelity Funds and Nippon India MF, according to a circular uploaded on the BSE's website.
SBI Life Insurance Company and HDFC Life Insurance Company, Abu Dhabi Investment Authority, Ashoka WhiteOak India Opportunities Fund, ICICI Prudential MF and HDFC MF are also among the investors.
Of these, LIC was the largest investor, picking up nearly 1.8 million shares, amounting to 11.99 per cent of the total anchor book, for ₹144 crore.
According to the circular, NSDL has allotted over 15 million equity shares to 61 funds at ₹800 apiece. This aggregates the transaction size to ₹1,201.4 crore.
The ₹4,011-crore NSDL initial public offering (IPO) is scheduled to open on July 30 and conclude on August 1. The price band has been set at ₹760 to ₹800 per share.
The depository's maiden public issue solely consists of offer-for-sale (OFS) component of 5.01 crore shares and those selling shares under this are -- National Stock Exchange of India (NSE), State Bank of India (SBI), HDFC Bank, IDBI Bank, Union Bank of India and Administrator of Specified Undertaking of the Unit Trust of India (SUUTI).
Since the public issue is entirely an OFS, NSDL will not receive any proceeds from the IPO. At the upper end of the price band, NSDL's maiden public issue is expected to fetch ₹4,011 crore, valuing the company at ₹16,000 crore.
This upcoming listing will make NSDL the country's second publicly traded depository after Central Depository Services (CDSL), which was listed on the NSE in 2017.
The listing of NSDL is crucial in order to comply with SEBI's ownership norms. These regulations require that no entity can hold more than 15 per cent of the shareholding in a depository company.
NSDL's principal shareholders, IDBI Bank and the NSE, are required to reduce their stake in the company to comply with SEBI's rule. Currently, IDBI holds 26.10 per cent and NSE owns 24 per cent stake in NSDL, which exceeds the permissible limit.
NSDL is a SEBI-registered market infrastructure institution offering a wide range of products and services to the financial and securities markets in India. Following the introduction of the Depositories Act in 1996, it pioneered the dematerialisation of securities in India in November 1996.
For the full financial year 2024-25, the depository's net profit surged by 24.57 per cent to ₹343 crore and total income rose to ₹1,535 crore, a 12.41 per cent increase over FY 2023-24.
The company announced that half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investo₹and the remaining 15 per cent for non-institutional buyers.
Investo₹can bid for a minimum lot size of 18 shares and in multiples of 18 thereafter. Investo₹are required to make a minimum investment of ₹14,400 to avail one lot of shares.
ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), IDBI Capital Markets & Securities, Motilal Oswal Investment Adviso₹and SBI Capital Markets are the book running lead managers to the issue. Shares of NSDL are expected to list on August 6.
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