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National Securities Depository Limited (NSDL), a SEBI-registered market infrastructure institution (“MII”) that provides a variety of goods and services to India’s financial and securities markets, has filed its Draught Red Herring prospectus with the Securities and Exchange Board of India (SEBI).
Following the introduction of the Depositories Act in 1996, NSDL was the first to pioneer the dematerialization of securities in India in November 1996. As of March 31, 2023, the business was India’s largest depository in terms of issuers, active instruments, market share in demat value of settlement volume, and value of assets kept in custody.
NSDL intends to go public
The business intends to obtain capital through an Initial Public Offering of equity shares with a face value of Rs. 2 apiece. The offer (the “Offer”) includes an offer to sell up to 57,260,001 equity shares (the “Offer for Sale”).The offer for sale of equity shares includes up to 22,220,000 equity shares by IDBI Bank Limited; up to 18,000,001 equity shares by National Stock Exchange of India Limited; up to 5,625,000 equity shares by Union Bank of India; up to 4,000,000 equity shares by State Bank of India; up to 4,000,000 equity shares by HDFC
Bank Limited (SS); and up to 3,415,000 equity shares by Administrator of the Specified Undertaking of the Unit Trust of India (collectively referred to as the offer).
The offer includes a reserve of equity shares for qualified workers to subscribe to (the “employee reservation portion”). The company and the selling shareholders may, in consultation with the BRLMs, offer a discount of the offer price to eligible employees bidding in the employee reservation portion (“employee discount”); the offer less the employee reservation portion is referred to as the “net offer” hereinafter.
The Red Herring Prospectus proposes to list the Equity Shares issued through the Red Herring Prospectus on the BSE.
The issue’s book running lead managers are ICICI Securities Limited, Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, IDBI Capital Markets & Securities Limited, Motilal Oswal Investment Advisors Limited, and SBI Capital Markets Limited.