NSDL Raises ₹1,201 Crore from Anchor Investors Ahead of IPO

National Securities Depository Ltd. (NSDL) raised ₹1,201 crore from anchor investors ahead of its initial public offering (IPO) opening. Institutional investors, including Life Insurance Corporation of India and Smallcap World Fund Inc., participated in the anchor portion. LIC was the largest investor, picking up nearly 1.8 million shares for ₹144 crore. The IPO is scheduled to open on July 30 and conclude on August 1, with a price band of ₹760 to ₹800 per share.

National Securities Depository Ltd. (NSDL) has successfully raised ₹1,201 crore from anchor investors ahead of its initial public offering (IPO) scheduled to open on July 30. The IPO, which aims to raise a total of ₹4,011.6 crore, is expected to be one of the largest offerings of the year. The anchor portion, which concluded on July 29, saw significant participation from institutional investors, including Life Insurance Corporation of India (LIC) and Smallcap World Fund Inc. [1]

LIC, the largest investor in the anchor portion, picked up nearly 1.8 million shares for ₹144 crore. The IPO is set to open for public subscription at a price band of ₹760 to ₹800 per share. The subscription window will remain open until August 1, with the allotment date scheduled for August 4 and the listing date for August 6. [1]

The strong investor interest, evident from the anchor portion, reflects the market's optimism about NSDL's potential. The company's grey market premium (GMP) of Rs 136 to Rs 138 per share indicates robust demand and high expectations for listing day gains. The GMP, which is an unofficial indicator derived from off-market trading, suggests that investors are bullish on NSDL's prospects. [2]

However, investors should be mindful of the risks associated with the IPO. NSDL's prospectus highlights potential risks such as business hits, revenue concentration, competition from CDSL, regulatory changes, cybersecurity threats, and pending legal proceedings. These risks could potentially impact NSDL's business and financial performance. [2]

In conclusion, the NSDL IPO is shaping up to be a significant event in India's financial calendar. With strong anchor investor participation and a high grey market premium, the IPO is expected to attract significant interest from retail investors. However, investors should carefully consider the risks associated with the offering before making investment decisions.

References:
[1] https://economictimes.indiatimes.com/markets/stocks/live-blog/ipo-gmp-nsdl-ipo-shanti-gold-ipo-aditya-infotech-ltd-price-band-grey-market-premium-today-expert-review-aditya-infotech-ipo-share-listing-date/liveblog/122967763.cms
[2] https://m.economictimes.com/markets/ipos/fpos/nsdl-ipo-10-risks-investors-should-be-mindful-of-ahead-of-wednesdays-launch/articleshow/122968258.cms