NSDL Set to Launch Landmark IPO: A New Era for India's Depository Industry

National Securities Depository Ltd (NSDL) is on the brink of launching its much-anticipated Initial Public Offering (IPO) on July 30, with expectations of raising approximately Rs 4,000 crore. Scheduled to conclude on August 1, the IPO marks NSDL's debut in the public domain, making it the country's second publicly traded depository after the listing of Central Depository Services (CDSL) in 2017.

The IPO is exclusively composed of an Offer For Sale (OFS) iterating that NSDL will not gain any proceeds. Major stakeholders selling shares include the National Stock Exchange of India (NSE), State Bank of India (SBI), and others. The significance of this IPO lies in its alignment with Sebi's ownership regulations, which mandate that no single entity may hold more than 15 per cent of a depository company's shareholding.

NSDL's principal shareholders, IDBI Bank and NSE, currently exceed this limit, holding stakes of 26.10 per cent and 24 per cent respectively. NSDL, a Sebi-registered entity since the inception of the Depositories Act in 1996, has been a pioneer in the dematerialization of securities in India. Notably, for the fiscal year 2024-25, NSDL reported a 24.57 per cent increase in net profits, reaching Rs 343 crore, underlining its financial growth and market position.

(With inputs from agencies.)