Financial Express

NSDL to Launch IPO Bidding Next Week

National Securities Depository Ltd (NSDL) is preparing to start accepting investor orders for its much‑anticipated initial public offering (IPO) as early as next week, according to a Bloomberg‑sourced report

IPO Size & Investor Sell‑Down

• The offer is projected to raise up to $500 million, slightly higher than earlier estimates of around $400 million
• It will be structured entirely as an offer for sale (OFS), with no fresh capital flowing into NSDL. Instead, existing shareholders will sell their stakes. These include major institutions such as the National Stock Exchange (NSE), State Bank of India (SBI), and IDBI Bank

Size Revision & Market Context

• Earlier filings estimated the IPO at 5.73 crore shares, but this has now been scaled back to 5.01 crore shares, bringing the total closer to ₹3,429 crore (~$400 million)
• Despite trimming the size, the IPO could still rise to $500 million depending on market appetite

Lead Managers & Market Position

• The transaction is being coordinated by ICICI Securities, Axis Capital, HSBC, IDBI Capital, Motilal Oswal, and SBI Capital Markets, with NUFG Intime India appointed as the registrar
• Established in 1996, NSDL is India’s largest depository, overseeing over ₹51 trillion in securities across more than 40 million investor accounts

Unlisted Price Trend & IPO Outlook

• Ahead of the public listing, pre‑IPO NSDL shares have slipped about 20% from a 52‑week high - falling from ₹1,275 to near ₹1,025 in the unlisted market
• This drop reflects broader sentiment, influenced by discounted listings like HDB Financial’s recent debut

What to Watch

• IPO window date: Bidding may start next week (July 2025), though the exact dates are yet to be revealed
• Market response: Watch for performance once listed on NSE & BSE.
• Valuation vs peers: Compare pricing to sector peers and recent IPOs like HDB Financial.
• Supply overhang: Since this is a secondary sale, NSDL won’t receive proceeds—impacting how proceeds are used.

In summary, NSDL's IPO marks one of the year's most significant capital‑market events. With an estimated size near $500 million, fully OFS structure, and backing by top financial institutions, it offers a high‑profile opportunity but also brings valuation and market‑sentiment caveats.