SEBI approves much-awaited NSDL IPO; HDFC Bank shares gain on sale prospects
NSDL had filed its Draft Red Herring Prospectus with the securities board in July 2023, but the DRHP was put in abeyance by SEBI.
The securities regulator SEBI has approved the long-awaited public issue for Indian securities depository National Securities Depository Limited (NSDL), which handles most of the securities held and settled in dematerialised form in the Indian capital market.
NSDL had filed its Draft Red Herring Prospectus (DRHP) on July 7, 2023, and the issue would be a pure OFS (offer for sale) with NSE and IDBI Bank planning to sell stake.
However, in August 2023, SEBI had placed the DRHP in abeyance in August. The regulator may pause any IPO if there is an ongoing investigation or if requested information from the company or other regulatory bodies is delayed.
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In its DRHP, the depository said the IPO will see sales of 57.3 million shares by its six shareholders. IDBI Bank will sell up to 22.2 million shares, while NSE will sell 18 million shares it owns in the depository.
Union Bank of India will sell 5.62 million shares, and State Bank of India, and Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) will sell 4 million and 3.4 million shares, respectively. The sixth shareholder participating in the IPO is HDFC Bank.
Shares of HDFC Bank surged over a percent on October 8 despite a flat market, quoting Rs 1,636.6 per share on the NSE. The private lender will sell a two percent stake in the issue and currently, it holds a 8.95 percent stake in the depository.
Once listed, NSDL would become the second depository services company to be listed on the domestic bourses, post the bumper market debut of peer Central Depository Services Limited (CDSL) in 2017. Meanwhile, at 9.50 am, CDSL stock price tumbled over a percent to trade around Rs 1,355 per share.
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