NSDL Updates IPO Draft Papers, Trims Offer Size

The National Securities Depository Ltd. has moved a step closer to its initial public offering. The depository has filed an addendum to its draft red herring prospectus with SEBI. As per the updated filing, the depository has trimmed the size of its offer, now comprising 50.15 million shares, down from the previously proposed 57.26 million.

As per the people privy to the development, the IPO is likely to be launched in an expedited manner now.

As reported previously, the market regulator has allowed time till the end of July to the depository to launch its highly anticipated IPO worth Rs 3,000 crore.

SEBI had approved NSDL’s IPO in October last year. The Mumbai-based securities depository’s offering will only include an offer for sale.

NSDL had filed the DRHP with the regulator in July 2023.

ICICI Securities Ltd. is the lead book-running manager for the IPO, along with Axis Capital Ltd., SBI Capital Markets Ltd., HDFC Bank Ltd., HSBC Securities and Capital Markets (India) Pvt. Ltd., Motilal Oswal Investment Advisors Ltd., and IDBI Capital Markets & Securities Ltd.

As a market infrastructure institution, NSDL requires additional approvals apart from the clearance to its DRHP before launching the IPO.

NSDL's competitor, Central Depository Services Ltd., went public in 2017 and has a market capitalisation of Rs 30,409.5 crore.

Notably, NSDL is India's largest depository, measured by multiple parameters, including the number of issuers, active instruments, market share in demat settlement volume, and the value of assets under custody.