NSDL IPO: A Landmark Move in Indian Securities Market

The initial public offering (IPO) of National Securities Depository Ltd (NSDL) saw a strong reception, with full subscription achieved within mere hours of its debut on Wednesday.

The offering, amounting to Rs 4,011 crore, garnered bids for 6,26,08,572 shares compared to the 3,51,27,002 shares available, resulting in a subscription rate of 1.78 times, according to data from the NSE.

The IPO's enthusiastic response was particularly evident among non-institutional investors and retail individuals, who subscribed 2.83 and 1.86 times respectively. Meanwhile, the segment designated for qualified institutional buyers attracted 84% subscription. Anchor investors had already committed over Rs 1,201 crore to the issue by Tuesday.

The entirety of the IPO comprises an offer for sale (OFS) of 5.01 crore shares, offered by entities such as the National Stock Exchange of India (NSE), State Bank of India (SBI), and other financial institutions. Consequently, NSDL will not receive direct capital from the IPO.

This significant listing positions NSDL as the second publicly traded depository in India, following 2017's listing of Central Depository Services (CDSL) on the NSE. Compliance with Sebi's ownership rules, which cap individual entity shareholding at 15%, is a driving factor behind the move. Principal stakeholders, including IDBI Bank and the NSE, are tasked with reducing their current stakes of 26.1% and 24% respectively to adhere to these regulations.

Since its establishment following the 1996 Depositories Act, NSDL has been a pioneering force in the dematerialisation of securities in India and remains a pivotal market infrastructure institution offering various products and services.

The IPO is managed by an array of lead managers, including ICICI Securities and Axis Capital, and is set to conclude on August 1, with trading expected to commence on August 6.

(With inputs from agencies.)