NSDL's IPO Sparks Investor Frenzy: 5 Times Oversubscription Achieved

The initial public offering of National Securities Depository Ltd (NSDL) garnered an impressive 5 times subscription by the second day of bidding, signaling high investor confidence.

According to data from the NSE, the Rs 4,011-crore share sale received bids for 17.65 crore shares against the 3.51 crore shares on offer. This equates to a subscription rate of 5.03 times. Notably, non-institutional investors showed significant interest, with this segment oversubscribed by 11.08 times. Retail individual investors subscribed 4.17 times, while qualified institutional buyers fetched a 1.96 times subscription rate.

NSDL secured over Rs 1,201 crore from anchor investors ahead of its IPO on Tuesday. The public issue, which extends till Friday, features a price band of Rs 760-800 per share. The offering is exclusively an offer for sale by major shareholders, including NSE, SBI, HDFC Bank, and others, meaning NSDL will not receive capital directly from this IPO.

The forthcoming listing of NSDL is strategically significant as it addresses Sebi's ownership regulations, mandating that no stakeholder exceeds a 15 per cent holding in a depository firm. Both IDBI Bank and NSE, currently holding 26.1 per cent and 24 per cent respectively, are expected to reduce their stakes accordingly.

With its roots tracing back to the introduction of the Depositories Act in 1996, NSDL has played a pivotal role in dematerialising securities in India. The market infrastructure institution remains a key player in India's financial landscape. Market observers anticipate NSDL's shares to list on August 6.