India’s IPO market has been relatively quiet in recent weeks, but could be changing soon. National Securities Depository (NSDL), the country’s largest securities depository, is reportedly rushing to take its much anticipated IPO to market. If all goes according to plan, NSDL could debut on the stock exchanges as early as next month with an estimated Rs 3,000 crore issue.
Let’s break it down in three key points: What’s the IPO structure?
NSDL’s IPO is purely an Offer for Sale, meaning no fresh shares will be issued. Instead, existing shareholders, including NSE, IDBI Bank, and HDFC Bank, will be selling their stakes. NSE, which currently holds a 24% share in NSDL, is among the major sellers. This means investors won’t be putting money directly into the company but rather buying shares from existing stakeholders looking to offload their holdings.
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Time is ticking for NSDL. The depository had secured in-principle approval for its IPO in September 2024, but that approval is only valid until September 2025. With deadlines fast approaching, the company is reportedly working at full throttle to wrap up the regulatory process.
An NSDL official told PTI, “Our dates are expiring next month. We are rushing against time to get things done fast.” This sense of urgency suggests that the IPO could go live sooner than expected.
Financial strength: A key selling point
Numbers speak louder than words, and NSDL’s financials tell the story. The company reported a 29.82% year on year rise in consolidated net profit, reaching Rs 85.8 crore in Q3 FY25. Total income also saw a 16.2% increase, climbing to Rs 391.21 crore.
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