NSDL Cuts IPO Size to 50.15 Million Shares from 57.26 Million Ahead of Listing Deadline

National Securities Depository Ltd. has reduced its initial public offering size, according to an addendum to its draft papers. The offer now consists of 50.15 million shares compared to 57.26 million shares mentioned in the original draft red herring prospectus. The IPO only consists of offer-for-sale component.

IDBI Bank will offload over 22 million shares, representing 11.11% stake, whereas National Stock Exchange will sell 18 million shares, or 9% stake, as part of the offer-for-sale. Union Bank of India, State Bank of India and HDFC Bank will cumulatively off-take over 3% stake in the company, while other selling shareholders will sell an aggregate 2% stake. Currently, IDBI Bank and NSE hold 26% and 24% stake in NSDL, respectively, whereas HDFC Bank holds nearly 9% stake.

In 2018, the Securities Exchange Board of India introduced rules limiting single-entity ownership in market infrastructure institutions to 15%, with a five-year compliance window ending in October 2023. The market regulator had granted extension to NSE for divesting its ownership in NSDL.

Earlier this year, the market regulator SEBI granted an extension to the depository for listing its shares. The extension was granted until July 31, 2025. According to reports, NSDL sought extension citing market conditions. The depository had filed for the IPO in July 2023 and the SEBI gave its approval for the said issue. Another depository, CDSL, is already listed on the bourses.

NSDL will book no proceeds because the IPO consists only of offer-for-sale and no fresh issue of shares. ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), IDBI Capital Markets & Securities, Motilal Oswal Investment Advisors and SBI Capital Markets are the book running lead managers of the issue.  

The depository’s consolidated net profit zoomed 33% on year during the nine-month ended December. Its consolidated revenue during the period rose 13% on year. Its net cash and cash equivalents also increased to Rs 82.9 crore as on December 31, 2024 from Rs 76 crore a year ago.