NSDL files DRHP with SEBI for IPO

economictimes.indiatimes.com:

NSDL) has filed its Draft Red Herring prospectus with the Securities and Exchange Board of India (Sebi) for an IPO. The IPO, which is an offer for sale (OFS) of 57,260,001 shares, will see IDBI Bank, NSE, SBI, HDFC Bank and Union Bank of India paring stakes. Post IPO, the dates of which are not yet announced, the stock would be listed on BSE.

The IPO includes a reservation of equity shares for subscription by eligible employees. The company managed more than 2.76 crore investor accounts with a demat custody value of Rs 297.55 lakh crore, as of May 31, 2022. It has more than 89 per cent market share in terms of demat asset value.

NSDL was incorporated in 1996 after the Depositories Act came into force. IDBI Bank and National Stock Exchange (NSE) hold 26% and 24% stakes in the company, respectively. State Bank of India (5%), Union Bank of India (2.8%) and Canara Bank (2.3%) are other key stakeholders.

Following the introduction of the Depositories Act in 1996, NSDL pioneered the dematerialization of securities in India in November 1996. As of March 31, 2023, the company is the largest depository in India in terms of number of issuers, number of active instruments, market share in demat value of settlement volume and value of assets held under custody. NSDL holds a higher share compared to CDSL amongst the two depositories across the number of companies available for demat, the quantity and value of securities held in demat form.