NSDL IPO: The securities depositor company, NSDL, is likely to launch the hottest IPO of March 2025 with approximately Rs 3,000 crore size. The IPO is much-awaited and is expected to be launched in late-March 2025. After the IPO, NSDL will list on the stock exchange BSE. NSE is the biggest shareholder of NSDL.

NSDL IPO Date:

As per reports, NSDL IPO could potentially open on March 25. That is because last month, an NSDL official revealed that they are looking to get necessary approval as early as next month, which is March.

Officials told PTI “Our dates are expiring next month. We are rushing against time to get things done fast. We will try (to launch the IPO before that).”

The official said that the National Securities Depository Ltd (NSDL), as a market infrastructure institution (MII), also needs other approvals apart from the draft red herring prospectus, adding that this approval has a looming deadline.

NSDL IPO Update:

The NSDL IPO will be launch, in-line with Sebi’s regulation of single-entity ownership in market infrastructure institutions to 15%. However, the rule had a five-year compliance window which ended in October 2023.

Stock exchange, NSE which is the parent company of NSDL, had sought an extension from the market watchdog to comply with the ownership regulations. NSE currently holds about 24% of NSDL. This move has delayed NSDL’s IPO.

NSDL first filed its IPO draft in July 2023, and due to Sebi’s suspension of ownership rule between August and December of that year, the IPO was delayed. NSDL received its approval in September 2024. That being said, Sebi’s approval is valid for one year, ending in September 2025.

Although Sebi’s 12-month approval window will end in September 2025, the regulator’s MII approval has pushed NSDL to expedite the process.

NDSL IPO Size:

According to the draft prospectus, the IPO will be purely offer for sale (OFS) of up to 57,260,001 equity shares. The selling shareholders are IDBI Bank, NSE, and Union Bank of India. The face value of the IPO is Rs 2 per equity share.

From the total size, 50% is likely to be allocated to qualified institutional buyers, while 15% of the IPO will be allotted to non-institutional investors (NII). The rest of 35% of the total size will be kept for retail individual investors.

NSDL IPO Price Bands:

The details of IPO price bands or discounts will be announced in due course.

NSDL IPO Allotment:

The IPO allotment date is yet to be known. However, the allotment is tentatively expected to be in April 2025.

NSDL IPO GMP:

Since the IPO dates and price bands are yet to be officially announced, the grey market premium (GMP) of NSDL will reflect few days prior to the commencement of the issue.

NSDL IPO Listing Date:

The IPO is expected to list in April month, if it is launched on March 25.

As on March 31, 2023, the company had over 31.46 million active demat accounts held with 283 depository participants registered with under NSDL, and its accounts holders were located in more than 99% of pin codes in India and 186 countries across the world. As on March 31, 2023, the company had an aggregate of 40,987 issuers registered with them. Also, the company witnessed a net increase of 3,509 issuers registered with us during Financial Year 2023. Furthermore, the average number of Demat Accounts opened with NSDL per day in Financial Years 2021, 2022 and 2023 was 6,840, 15,528 and 15,139, respectively, as per CRISIL report.

Additionally, NSDL also held assets in custody aggregating to Rs 43,060.50 billion for individuals (including NRIs) and Hindu Undivided Family (“HUFs”) accounts, which constituted 71.79% of the total value of such assets under custody in dematerialized as of March 31, 2023 (Source: CRISIL Report).

NSDL, one of the largest Depositories in the World, established in August 1996 has established a state-of-the-art infrastructure that handles most of the securities held and settled in dematerialized form in the Indian capital market. Although India had a vibrant capital market which is more than a century old, the paper-based settlement of trades caused substantial problems like bad delivery and delayed transfer of title, etc. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL.