NSDL Set to Launch Rs 3,000-Crore IPO by Next Month

National Securities Depository Ltd (NSDL), a key player in India’s financial infrastructure, is aiming to launch its long-awaited Rs 3,000-crore Initial Public Offering (IPO) as early as next month. The move comes after months of anticipation, with the company gearing up to tap into the public market.

Time Running Out for NSDL’s IPO Launch

A senior official from NSDL confirmed the plan, adding that the depository is racing against time to complete all the necessary formalities. Although the draft red herring prospectus (DRHP) is in place, NSDL still requires additional approvals, particularly from the Securities and Exchange Board of India (Sebi). The official mentioned that the approval process is under tight deadlines, with the 12-month window for the DRHP set to expire in September.

“Our dates are expiring next month. We are rushing against time to get things done fast,” said the official, emphasizing the urgency of securing the MII approval, a crucial step for the IPO to proceed smoothly.

Challenges Behind the Delay

While the stock market has been somewhat volatile, the official dismissed concerns that the current market conditions were delaying the IPO. He pointed out that even in uncertain times, several IPOs are still making their way to the market. Instead, the delay has been attributed to the significant amount of work required and challenges on the manpower front.

Key Details About NSDL’s IPO

NSDL is one of India’s largest depositories, handling the bulk of the country’s dematerialized accounts. The IPO will be a complete Offer For Sale (OFS), where existing stakeholders, including the National Stock Exchange (NSE), State Bank of India (SBI), and HDFC Bank, will collectively offload 5.72 crore equity shares.

This public offering will give investors an opportunity to buy into the financial institution that plays a central role in India’s capital markets.

NSDL’s Financial Performance

Despite challenges in the lead-up to its IPO, NSDL has shown strong growth in its financial performance. The company recently reported a 30% rise in net profit for the December quarter, reaching Rs 85.8 crore, up from Rs 66.09 crore in the same period last year. Additionally, its total income grew by 16.2%, amounting to Rs 391.21 crore during the October-December 2024 period.

Looking Ahead

NSDL’s upcoming IPO is expected to be a significant event in India’s financial sector, especially as the company continues to play a pivotal role in managing the country’s securities market. While the clock is ticking, the depository is focused on clearing the necessary hurdles to meet its goal of going public.

As the final preparations are made, market watchers will closely follow NSDL’s progress. Will the IPO launch as planned, or will any last-minute delays occur? Only time will tell, but for now, the anticipation continues to build.