NSDL holders selling 50.15M shares in India IPO

NSDL holders selling 50.15M shares in India IPO

The National Securities Depository Limited (NSDL) is set to list on the stock exchanges, following the Securities and Exchange Board of India's (SEBI) in-principle approval. The IPO, initially planned for July, has been delayed due to valuation negotiations and is now expected to launch by late July or early August [1].

NSDL's IPO, initially targeting a valuation of ₹16,000 crore, has seen its issue size reduced from 57.2 million shares to 50.1 million shares. The company has filed its draft red herring prospectus (DRHP) with SEBI, and an addendum was filed in May, reflecting these changes [1].

The IPO will be an offer for sale (OFS) of 50.1 million shares with a face value of ₹2 each. Key shareholders planning to offload their stake include the National Stock Exchange of India, IDBI Bank, and Union Bank of India, with the company targeting a listing on the BSE [2]. The price band and final offer price will be determined through a book-building process, with MUFG Intime India appointed as the registrar to the issue [2].

NSDL's unlisted shares have been trading at ₹1,025, down from ₹1,250 a month ago, with a grey market premium of ₹154 per share. The company's price-to-earnings ratio is nearly 60 times, while its larger listed peer CDSL trades at 69 times [1].

Trading in NSDL's unlisted shares has been frozen since July 18, in line with regulatory norms, and is expected to remain halted until six months after the company's shares are listed on the bourses [2].

References:
[1] https://m.economictimes.com/markets/ipos/fpos/nsdl-gets-in-principle-nod-to-list-by-mid-august/articleshow/122846902.cms
[2] https://www.business-standard.com/markets/news/nsdl-ipo-trading-in-unlisted-shares-freezes-check-key-details-from-drhp-125072100411_1.html