NSDL IPO: Depository Major to Float Rs 3,000 Crore IPO Next Month
NSDL plans to launch its Rs 3,000-crore IPO next month, rushing to meet the September approval deadline. Backed by NSE, SBI, and HDFC Bank, the IPO proceeds despite market volatility. NSDL’s 30% profit rise in Q3 highlights strong financials.
The long-awaited NSDL IPO will be coming to the market shortly, with the depository company preparing to float its Rs 3,000 crore initial public offering (IPO) next month. A senior National Securities Depository Ltd (NSDL) official has stated that the firm is racing against time to complete the required approvals and timelines.
NSDL IPO Details and Timeline
As a market infrastructure institution (MII), NSDL requires multiple approvals apart from the Draft Red Herring Prospectus (DRHP). Approval from the Securities and Exchange Board of India (SEBI) for MIIs is crucial, and its expiration is pushing NSDL to expedite the IPO process.
The deadline to approve the DRHP expires within 12 months, i.e., in September 2025. But mainly, the key urgency is derived from the approval of MII by SEBI, for which NSDL expedited the sale of shares.
Why Is NSDL Pushing the IPO?
Manpower shortage is one of the biggest challenges NSDL is currently facing in rolling out its IPO. The amount of work involved in the IPO is considerable, and it has been a reason for the delay, as per a company official. Even in choppy market conditions, the official observed that there have been instances where companies have launched their IPOs successfully, and this goes on to show that there is still a window of opportunity for NSDL.
NSDL IPO Format: A Complete Offer for Sale (OFS)
NSDL IPO is to be 100% an Offer for Sale (OFS) and won't involve fresh issuance of stocks. Current owners like the National Stock Exchange (NSE), State Bank of India (SBI), and HDFC Bank intend to sell an aggregate amount of 5.72 crore of equity shares via the IPO.
Financial Performance of NSDL
Before its IPO, NSDL has posted a robust financials. In the October-December 2024 quarter, the company saw a net profit rising by 30% to Rs 85.8 crore from Rs 66.09 crore in the same quarter of last year. The total income also rose by 16.2% to Rs 391.21 crore during the quarter ended December 2024.
What does This Means for Investors?
With NSDL covering a major proportion of India's dematerialized accounts, the IPO in the offing will find strong retail and institutional interest. The NSDL IPO GMP will provide the first flavor of market opinion about the offering.
Important Highlights of NSDL IPO
- Size of IPO: Rs 3,000 crore
- Type of Issue: 100% Offer for Sale (OFS)
- Prominent Shareholders Offering Stake: NSE, SBI, HDFC Bank
- Approval Expiry for DRHP: September 2025
- SEBI MII Approval Date: Overwhelming, accelerating the IPO process
- NSDL Q3 Financials:
Net Profit: Rs 85.8 crore (higher by 30%)
Total Income: Rs 391.21 crore (higher by 16.2%)
Conclusion
NSDL's IPO opening date will be before September 2025, while the company focuses on obtaining regulatory clearances. Institutional investors seeking India's increasing financial infrastructure exposure may find the NSDL IPO of interest due to the dominance in the market of NSDL and robust financial results. Look for updates regarding the NSDL IPO price band, allotment status, and listing date.
Frequently Asked Questions (FAQs)
1. When is NSDL releasing its IPO?
NSDL is aiming for an IPO release expected in March 2025 to comply with SEBI's deadline for regulatory approval.
2. How large is the NSDL IPO?
The IPO will raise Rs 3,000 crore via a 100% Offer for Sale (OFS).
3. Which firms are offering stakes in the NSDL IPO?
Large shareholders NSE, SBI, and HDFC Bank will sell 5.72 crore equity shares.
4. What has been NSDL's financial performance?
NSDL witnessed a 30% jump in net profit for Q3 FY24 at Rs 85.8 crore, and total income increased by 16.2% to Rs 391.21 crore.
5. Where do I find NSDL IPO GMP?
The NSDL IPO GMP will be updated nearer the date of the IPO on the IPO Ji website/app, financial news sites, and market monitoring portals.
Stay tuned for more details regarding NSDL IPO subscription status, allotment, and listing date!
