Login to Continue Learning
National Securities Depository Ltd (NSDL) is set to launch its much-anticipated Initial Public Offering (IPO) on July 30, aiming to raise approximately Rs 4,000 crore. The IPO will conclude on August 1 and marks NSDL’s debut in the public domain. This event is significant as it makes NSDL the second publicly traded depository in India after Central Depository Services (CDSL)’s listing in 2017.
The IPO consists solely of an Offer For Sale (OFS), with no proceeds going to NSDL itself. Major stakeholders, including the National Stock Exchange of India (NSE) and State Bank of India (SBI), are selling shares. This IPO aligns with SEBI’s ownership regulations, which stipulate that no single entity can hold more than 15 percent of a depository company’s shareholding.
NSDL’s principal shareholders, IDBI Bank and NSE, currently exceed this limit, holding stakes of 26.10 percent and 24 percent respectively. Since its inception in 1996 under the Depositories Act, NSDL has been at the forefront of dematerializing securities in India. For the fiscal year 2024-25, NSDL reported a 24.57 percent increase in net profits, reaching Rs 343 crore, highlighting its financial growth and market position.
This IPO is expected to bring about a new era for the depository industry in India, reflecting both regulatory compliance and the company’s strong financial performance.
📚 Reading Comprehension Quiz
What is the primary purpose of NSDL's Initial Public Offering (IPO)?
Please login or register to take the quiz and earn points!
