NSDL's proposed IPO put in abeyance by SEBI

The proposed initial share sale of NSDL has been kept in 'abeyance' by Sebi, the capital markets regulator. However, the Securities and Exchange Board of India (Sebi) did not clarify further. 

On July 7, the National Securities Depository Ltd (NSDL) submitted its preliminary papers with SEBI.   

As per the draft papers, NSDL's proposed initial public offering (IPO) is a complete offer-for-sale (OFS) of more than 5.72 crore equity shares by existing shareholders. 

Under the OFS, IDBI Bank plans to offload 2.22 crore shares, National Stock Exchange (NSE) 1.80 crore shares, Union Bank of India 56.25 lakh shares, State Bank of India and HDFC Bank will offload 40 lakh shares each. 

Also, Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) will sell 34.15 lakh shares of the Mumbai-based depository. 

IDBI Bank held 26.10% of the share capital of NSDL whereas NSE held 24%.   

A certain portion of the issue will be reserved for eligible employees as well and the company may offer a discount to them on the IPO price. 

The draft papers also highlight that the shares of the company are proposed to be listed on the BSE. 

According to the financial year of 2023, the revenue of NSDL stood at Rs 1,099.81 crore and net profit was Rs 234.81 crore, which was higher than that in the previous fiscal.

Without disclosing the reason, Sebi said "issuance of observations (has been) kept in abeyance" with regard to the IPO of NSDL, an update showed on the regulator's website. 

NSDL is a Sebi-registered market infrastructure institution offering a wide range of products and services to the financial and securities markets in India.