Share Market News: NSDL IPO will open for bidding on this date, know what is the current GMP

Share Market News: National Securities Depository Limited (NSDL) has fixed the price band for its first Initial Public Offering (IPO) at ₹760 to ₹800 per share. The issue will be entirely through Offer for Sale (OFS), under which the company plans to raise around ₹4,011 crore. The IPO will open for bidding on July 30, while anchor investors will be able to bid on July 29. The issue will close on August 1, and the listing of shares will likely take place on August 6.

IPO Details

This IPO of NSDL is entirely based on Offer for Sale (OFS), in which a total of 5.01 crore shares will be sold. This means that the amount received from this issue will not go directly to the company, but this amount will go to the shareholders selling the shares. The offerors include National Stock Exchange (NSE), State Bank of India (SBI), HDFC Bank, IDBI Bank, Union Bank of India, and Unit Trust of India (SUUTI). The total valuation of the company based on the upper price band (₹800) is ₹16,000 crore.

NSDL: India's second listed depository company

After listing, NSDL will become India's second listed depository company. Earlier, Central Depository Services Limited (CDSL) was listed in 2017. As per SEBI rules, no entity is allowed to hold more than 15% stake in a depository company. Currently, IDBI Bank holds 26.10% and NSE holds 24% stake, which will be reduced through this OFS.

About the Company

National Securities Depository Limited is a SEBI-registered market infrastructure institution, which introduced the depository system in India in November 1996. In the financial year 2024-25, the company reported a net profit of ₹343 crore, up 24.57% over the previous year. During this period, the total income of the company was ₹1,535 crore, which saw an increase of 12.41%.

Important information for investors

Allotment of shares in IPO:

• 50% share for qualified institutional buyers (QIBs).
• 35% share for retail investors.
• 15% share for non-institutional investors (NIIs).

Minimum investment: There are 18 shares in one lot, for which a minimum investment of ₹14,400 is required. Investors can buy shares in multiples of 18.

Grey Market Premium (GMP): NSDL shares are trading at a premium of 18.13% i.e. ₹145-₹155 before the IPO, indicating strong interest from investors.

Book Running Lead Managers

NSDL has appointed the following Book Running Lead Managers for this IPO:

• ICICI Securities
• Axis Capital
• HSBC Securities & Capital Markets (India)
• IDBI Capital Markets & Securities
• Motilal Oswal Investment Advisors
• SBI Capital Markets

Considerations for Investors

This IPO of NSDL can be attractive for investors who are looking for investments in the market infrastructure sector. The company's strong financial position, growing profits, and the premium of shares in the grey market make it an attractive opportunity. However, since it is a purely OFS, investors should understand that the proceeds from this issue will not be directly used in the growth of the company.