SEBI approves ₹3,000 crore NSDL IPO: Here’s a list of banks likely to divest their stake via OFS

Leading depository services provider National Securities Depository Ltd (NSDL) is all set to launch its much-awaited public offer. Market regulator Securities and Exchange Board of India (SEBI) approved the initial public offering (IPO) of NSDL more than a year after filling its draft papers.

NSDL submitted its Draft Red Herring Prospectus (DRHP) in July 2023 and received Sebi's observations on September 30, 2024. The company can launch its IPO within a year of receiving the market regulator’s observations.

According to the offer documents filed with Sebi, the NSDL IPO is an entirely Offer for Sale of 5.72 crore equity shares. The company will announce other details, such as the IPO price and launch dates, later. The depository aims to raise ₹3,000 crore via the public issue.

According to NSDL’s DRHP, six shareholders will pare stakes in the depository through IPO, including IDBI bank selling up to 2.22 crore shares and NSE offloading 1.8 crore shares.

NSDL’s major shareholders include State Bank of India (SBI), HDFC Bank, Dena Bank, Oriental Bank of Commerce, Axis Bank Limited, Canara Bank, Deutsche Bank, HSBC, Citibank and Standard Chartered Bank.

The following banking shares will be on investors’ radars in the run-up to the launch of the NSDL IPO.

State Bank of India

HDFC Bank Limited

Union Bank of India

IDBI Bank Limited

In addition to these, the National Stock Exchange will divest 1.8 crore equity shares, or 12.28% of the shareholding, in NSDL.

The leading stock exchange’s total shareholding in NSDL currently stands at 24% or 4.8 crore shares. The Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) will also sell up to 34.15 lakh shares of NSDL.