NSDL IPO: Is it still worth subscribing amid declining GMP? 5 key facts.

NSDL's IPO is a pure offer-for-sale with 5.01 crore shares being offloaded by existing shareholders. The grey market premium has cooled down, with shares commanding a GMP of Rs 135, implying a potential listing price of Rs 935. The IPO opens on July 30 and closes on August 1, with listing expected on August 6. The price band is set between Rs 760 and Rs 800 per share, with a minimum investment of Rs 13,680 for the retail category.

Title: NSDL IPO: Key Details and Market Sentiment

The highly anticipated National Securities Depository Ltd. (NSDL) initial public offering (IPO) is set to open for subscription on July 30 and close on August 1. This IPO, with a price band of ₹760 to ₹800 per share, is an offer for sale of 5.01 crore shares, totaling ₹4,011.60 crore [1]. The IPO will be led by ICICI Securities as the book-running lead manager and MUFG Intime India Private Limited as the registrar [1].

IPO Structure and Share Allocation

NSDL's IPO is a pure offer for sale (OFS) with no fresh capital being raised. Instead, it is an exit route for existing shareholders, including IDBI Bank, National Stock Exchange (NSE), State Bank of India (SBI), HDFC Bank, Union Bank of India, and the Administrator of Specified Undertaking of the Unit Trust of India (SUUTI) [2]. The face value of each equity share is ₹2, and the minimum investment for retail investors is ₹13,680 [3].

Grey Market Premium (GMP)

The grey market premium (GMP) for NSDL shares has cooled down from its initial peak. As of the latest update, the GMP is around ₹135, implying a potential listing price of ₹935, which is approximately 17% higher than the upper end of the IPO price band [2]. However, it is important to note that the GMP is not an official indicator and can change based on investor sentiment.

Allotment and Listing

The allotment for the NSDL IPO is expected to be finalized on August 4, with listing on both the BSE and NSE tentatively scheduled for August 6 [3]. This upcoming listing will make NSDL the country's second publicly traded depository after Central Depository Services (CDSL), which was listed on the NSE in 2017 [3].

Conclusion

The NSDL IPO is a significant event for investors and financial professionals. While the GMP has cooled down, it still indicates a potential premium for the shares. Investors should carefully consider the IPO details and market sentiment before making any investment decisions.

References

[1] https://www.livemint.com/market/ipo/nsdl-ipo-opens-next-week-gmp-price-date-other-details-in-10-points-11753608620415.html
[2] https://www.financialexpress.com/market/ipo-news-nsdl-ipo-with-gmp-sliding-is-it-still-a-subscribe-5-must-know-facts-ahead-of-issue-launch-on-july-30-3928701/
[3] https://indianexpress.com/article/business/market/nsdl-ipo-subscription-opens-july-30-price-band-allotment-listing-date-10153016/