NSDL file DRHP by year-end , IPO in May 2023
NSDL (National Securities Depository Limited), the country’s first repository services establishment, which is backed by crucial investors like IDBI Bank & NSE is likely to shortlist 7 investment banks as counsels as it prepares to launch an original public offer in 2023.
still, NSDL would come the alternate repository services company to be listed on the domestic bourses, post the cushion request debut of peer CDSL (Central Depository Services Limited) in 2017, If the table plans fructify.
“Several banks had pitched for this deal and NSDL is likely to go ahead with ICICI Securities, Axis Capital, HSBC Securities, Motilal Oswal Investment counsels, SBI Capital, HDFC Bank and IDBI Capital,” said one of the persons cited over.
which has played a crucial part in revamping the Indian securities request by easing holding and transfer of securities in dematerialized form, is cash rich and that the proposed IPO was likely to be majorly an OFS (offer for trade) with stake dilution by multiple investors. “ICICI Securities is the left lead for this deal and IDBI Bank, NSE and many others are likely to share in the OFS and trim their stake,” this person said.
As of June 30, 2022, IDBI Bank held 26.1 per cent and NSE held 24 per cent in NSDL. Other shareholders include the likes of HDFC Bank with 9.95 per cent, SBI with 5 percent, Deutsche Bank AG with 5 percent and Citi Bank, HSBC and Standard Chartered Bank with 3.13 percent each. The Central Government, through the Specified Undertaking of The Unit Trust of India (SUUTI) also holds 6.83 percent.
“No final call has been taken on the amount of the IPO, but as of now the reflective size is around Rs2,500 crores and could be overhead of this number as well,” added a third person.
A near look at NSDL and its stats
Established in 1996, NSDL, which is led by MD & CEO Padmaja Chunduru, provides a bouquet of services to investors, stock brokers, custodians and issuer companies through its civil network of Depository mates.
According to the establishment’s website, as of 31st July, 2022, NSDL has active investor 2,84,31,848 accounts 57,262 DP service centers and Rs306.72 lakh crores of demat guardianship value.
The request share of NSDL in value of demat means is further than 89 and its demat accountholders are present in further than 99 of leg canons in the country and 189 countries across the globe, reflecting its wide reach. In FY22, NSDL’s consolidated profit stood at Rs 821 crores, up 56 percent on a YoY base. Its gains stood at 212.32 crores versus a profit of Rs188.55 crores in the former financial.
The other repository CDSL was set up in 1999 and raised Rs 524 crores in its 2017 IPO which was subscribed a whopping 170 times. lately, CDSL crossed the 7crore mark in active demat accounts. “The Indian repository services member is a duopoly and we’ve just scratched the face as a country when it comes to addition of new demat accounts,” said Ajay Garg, Author and MD, Equirus Capital.
To be sure, in the repository system, securities are held in repository accounts, which is akin to holding finances in bank accounts. Transfer of power of securities is done through simple account transfers. This system does down with all the pitfalls and hassles typically associated with paperwork. Accordingly, the cost of transacting in a depository terrain is vastly lower as compared to the before system of transacting in instruments.