The National Securities Depository Ltd. (NDSL), has initiated talks with investment banks for an initial public offering (IPO) worth Rs 4,500 crore at a valuation of Rs 16,000-17,000 crore. Top domestic and foreign investment banks are competing for the IPO mandate and the mandates may be finalized in the next few weeks.
The IPO is mostly going to be a secondary share sale by existing investors, while some small amount may be raised as part of the IPO. NSDL’s biggest shareholders are IDBI Bank and the National Stock Exchange, holding 26% and 24% stakes respectively.
Most shareholders of the company, including several public sector bank shareholders and other investors in the company are likely to sell part of their shareholding through the IPO. NSDL’s depository services contributed Rs 369.26 crore revenue in FY22, followed by its banking services business which contributed Rs 299.24 crore and database management services which brought in Rs 92.60 crore.
NSDL was set up in 1996 after the enactment of the Depositories Act. As of 31 May, it had over 27.6 million investor accounts, with a demat custody value of Rs 297.55 trillion. The depository has a market share of more than 89% in terms of demat assets value.