HDFC Bank Plans 2% Stake Divestment in NSDL IPO

10 Jul 2023 , 02:08 PM

HDFC Bank, a leading private sector lender, has revealed its plan to participate in the initial public offering (IPO) of the National Securities Depository Limited (NSDL) and divest a 2% stake in the company.

The bank made the announcement on Saturday, stating that it intends to offer for sale up to 40 lakh equity shares it holds in NSDL through the IPO.

This divestment of stake in NSDL is part of HDFC Bank’s ongoing partial divestment of its equity stake in the company. The bank had previously sold a 1% stake in NSDL through definitive agreements on December 2, 2022.

The second tranche of stake sale in NSDL is subject to the terms of the proposed IPO, including pricing, timing, and other considerations as permitted under applicable laws.

The price per share and cash consideration for the second tranche will be disclosed in due course, once the IPO terms are finalized. If the 2% stake sale is successful, HDFC Bank’s shareholding in NSDL will be reduced to 6.95%.

NSDL is a depository that provides depository, clearing, and settlement services for securities and instruments. NSDL has filed a draft red herring prospectus for the IPO with the Securities and Exchange Board of India (SEBI) on July 7, 2023. The IPO includes a fresh issue of equity shares and an offer for sale of up to 57,260,001 equity shares

Besides HDFC Bank, other lenders and entities such as IDBI Bank, NSE, Union Bank of India, SBI, and the Administrator of the Specified Undertaking of the Unit Trust of India will also be selling their shares in the NSDL IPO.

In addition to the NSDL IPO news, HDFC Bank has also announced that it will disclose its unaudited standalone and consolidated financial results for the first quarter ending June 30, 2023, on July 12, 2023. The bank’s board of directors will convene a meeting on July 17, 2023, to discuss various matters, including the financial results for Q1 FY24.

For feedback and suggestions, write to us at [e-mail]