Mumbai Mumbai: The Securities Exchange Board of India (SEBI) has approved the initial public offering (IPO) of India’s largest depository, National Securities Depository Ltd (NSDL). The market regulator issued an observation letter for the company’s public issue on September 30. In SEBI parlance, receiving an observation letter means approval to issue a public issue. The issue of the Mumbai-based securities depository will consist of an offer-for-sale component only. According to the draft red herring prospectus (DRHP) filed by NSDL on July 7, 2023, the depository will sell 5.72 crore shares through the issue of equity shares with a face value of Rs 2 each.
IDBI Bank, which holds around 26 per cent stake in NSDL, will sell 2.22 crore shares, while NSE, which holds 24 per cent stake in the depository firm, will sell 1.8 crore shares in the IPO. State Bank of India (SBI), Union Bank of India (UBI) and Canara Bank hold 5 per cent, 2.8 per cent and 2.3 per cent stake in the company, respectively. UBI will sell 56.2 lakh shares, and SBI and Administrator of the Specified Undertaking of Unit Trust of India (SUUTI) will sell 40 lakh and 34 lakh shares, respectively, in the OFS.
