NSDL expected to raise Rs. 4500 crore from IPO

27 Jun 2022 , 11:43 AM

National Securities Depository (NSDL), the first and largest provider of depository services in India, aims to generate Rs 4,500 crore through its initial equity sale.

Indian central securities depository National Securities Depository Limited – NSDL is headquartered in Mumbai. It was launched in August 1996 and is India’s first nationwide computerized securities depository.

According to The Mint, which cited two persons with knowledge of the situation, NSDL has started discussions with investment banks about conducting an initial public offering (IPO).

As of May 31, 2022, the organization was in charge of managing more than 2.76 crore investor accounts with a Demat custody value of Rs 297.55 lakh crore. In terms of demat asset value, it holds a market share of more than 89 percent.

After the Depositories Act went into effect in 1996, NSDL was formally established. At a value of Rs 16,000-17,000 crore, the business is expected to raise Rs 4,500 crore from the main markets.

The biggest local and international investment banks are reportedly in discussions with NDSL. Secondary share sales that provide current investors with an exit will make up the majority of the offering.

The National Stock Exchange (NSE) and IDBI Bank each own 24 and 26 percent of the corporation, respectively. Other significant participants are State Bank of India (5%) Union Bank of India (2.8%), and Canara Bank (2.3%).