NSDL IPO fully subscribed; institutional, retail investors part also booked

New Delhi: The initial public offering (IPO) of National Securities Depository Limited (NSDL) got fully subscribed within hours of opening for bidding on Wednesday and later ended the day with 1.78 times subscription.

The Rs 4,011-crore initial share sale received bids for 6,26,08,572 shares against 3,51,27,002 shares on offer, translating into 1.78 times subscription, as per NSE data.

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Non-institutional investors part received 2.83 times subscription while the quota for retail individual investors (RIIs) fetched 1.86 times subscription. The portion for qualified institutional buyers (QIBs) received 84 per cent subscription.

National Securities Depository Ltd mobilised over Rs 1,201 crore from anchor investors on Tuesday.

The IPO will conclude on August 1. The price band has been fixed at Rs 760 to Rs 800 per share.

The depository's public issue solely consists of an offer for sale (OFS) component of 5.01 crore shares, and those selling shares under this are National Stock Exchange of India (NSE), State Bank of India (SBI), HDFC Bank, IDBI Bank, Union Bank of India, and Administrator of Specified Undertaking of the Unit Trust of India (SUUTI).

Since the public issue is entirely an OFS, NSDL will not receive any proceeds from the IPO.

This upcoming listing will make NSDL the country's second publicly traded depository after Central Depository Services (CDSL), which was listed on the NSE in 2017.

The listing of NSDL is crucial to comply with Sebi's ownership norms. These regulations require that no entity can hold more than 15 per cent of the shareholding in a depository company.

NSDL's principal shareholders, IDBI Bank and the NSE, are required to reduce their stake in the company to comply with SEBI's rule.

Currently, IDBI holds 26.1 percent and NSE owns 24 percent stake in NSDL, which exceeds the permissible limit.

NSDL is a Sebi-registered market infrastructure institution offering a wide range of products and services to the financial and securities markets in India. Following the introduction of the Depositories Act in 1996, it pioneered the dematerialisation of securities in India in November 1996.

ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), IDBI Capital Markets & Securities, Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers to the issue.

Shares of NSDL are expected to list on August 6.

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