National Securities Depository Limited (NSDL) a SEBI registered market infrastructure institution (“MII”) offering a wide range of products and services to the financial and securities markets in India has filed its Draft Red Herring prospectus with the Securities and Exchange Board of India (SEBI).
Following the introduction of the Depositories Act in 1996, NSDL pioneered the dematerialization of securities in India in November 1996. As of March 31, 2023, the company is the largest depository in India in terms of number of issuers, number of active instruments, market share in demat value of settlement volume and value of assets held under custody (Source: CRISIL Report).
The company plans to raise funds via Initial Public Offering through issue of equity shares of face value Rs. 2 each. The offer (The “Offer”) comprising of an Offer for sale of up to 57,260,001 equity shares (The “Offer for Sale”).
The offer for sale of equity shares comprises of 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); up to 3,415,000 Equity Shares by Administrator of the Specified Undertaking of the Unit Trust of India; (collectively referred to as the “selling shareholders” and such equity shares offered by the selling shareholders, the “offered shares”) (the “offer for sale” or the “offer”).
The offer includes a reservation of equity shares for subscription by eligible employees (the “employee reservation portion”). The company and the selling shareholders, in consultation with the BRLMs, may offer a discount of the offer price to the eligible employees bidding in the employee reservation portion (“employee discount”), the offer less the employee reservation portion is hereinafter referred to as the “net offer”.
The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on BSE. 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 are the Book Running Lead Managers to the issue.