NSDL IPO Opens On July 30: Latest GMP Indicates 21% Premium, Check Price Band And Other Key Details

National Securities Depository Ltd. (NSDL) is set to launch its initial public offering (IPO) next week. NSDL is the first and largest securities depository in India. It was established in August 1996. 

Ahead of the opening of the much-anticipated IPO, the grey market premium (GMP) for the mainboard issue indicated a listing gain of almost 21% over the issue price.

Investors who want to bid for shares in the IPO can check the following details before making an investment call.

According to InvestorGain, the GMP for the NSDL IPO stood at Rs 167 per share as of 9:30 a.m. on July 25. The latest GMP indicates a listing price of Rs 967 apiece at a premium of 20.88% over the upper limit of the IPO price band. 

Note: GMP does not represent official data and is based on speculation.

NSDL IPO is a book-building issue worth Rs 4,011.6 crore. It comprises entirely an offer-for-sale (OFS) of 5.01 crore shares.

The price band for the IPO has been fixed between Rs 760 and Rs 800 per share.

To participate in the IPO, retail investors need to bid for a single lot size of 18 shares, requiring an investment of Rs 13,680. Small Non-Institutional Investors need to bid for 14 lots, amounting to an investment of Rs 2,01,600.

Big Non-Institutional Investors can participate in the IPO by bidding for a minimum of 70 lots. It will require a minimum investment of Rs 10,08,000.

The subscription window for the IPO will remain open from July 30 to Aug. 1. The IPO share allotment status is proposed to be finalised on Aug. 4. The company will transfer shares to the Demat accounts of successful bidders on Aug. 5, and refunds for non-allottees will also be processed on the same day. 

Shares of NSDL are tentatively scheduled to be listed on the BSE on Aug. 6.

A maximum of 50% of the net issue is reserved for the Qualified Institutional Buyers (QIBs). At least 35% of the net offer will be allocated to retail investors. The remaining 15% will be set aside for Non-Institutional Investors (NIIs).  

ICICI Securities Ltd. is the book-running lead manager of the NSDL IPO. MUFG Intime India Pvt. is the registrar for the issue.

NSDL is expected to achieve the benefits of listing on the stock exchange following the sale of 5.01 crore shares through the OFS route.

NSDL is one of the largest security depositories in the world. It plays a crucial role in capital market transactions by facilitating dematerialisation of equity shares and allied equity instruments. The leading depository has developed a cutting-edge infrastructure that facilitates the majority of securities held and transacted in dematerialised form within the capital market.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.