NSDL IPO: India’s largest depository, National Securities Depository Limited (NSDL), is set to launch its initial public offering (IPO) in March. The ₹3,000 crore public issue is entirely an offer for sale (OFS) of up to 5.73 crore shares.
Four banking stocks—IDBI Bank, Union Bank of India, State Bank of India, and HDFC Bank—are expected to be in focus ahead of the IPO. These stocks may attract investors’ attention as they are the selling shareholders of the issue.
NSDL IPO details
NSDL IPO is entirely an OFS, which means the net proceeds will not go into the company’s balance sheet but into the coffers of institutions offloading their shareholding in NSDL.
IDBI Bank, Union Bank of India, SBI, and HDFC Bank are selling their stakes through the NSDL’s public issue. The net proceeds are expected to boost these Indian banks’ balance sheets.
Some experts believe the NSDL IPO may positively impact the quarterly numbers of IDBI Bank, Union Bank of India, SBI, and HDFC Bank.
According to the company’s Draft Red Herring Prospectus (DRHP), IDBI Bank will offload up to 2.22 crore shares, and Union Bank of India will sell up to 56.25 lakh shares in the OFS.
SBI and HDFC Bank both are selling up to 40 lakh shares in the issue.
Apart from these four banks, NSE is selling 1.80 crore shares, and the administrator of the specified undertaking of the Unit Trust of India is selling up to 34.15 lakh shares in the OFS.
“SBI and HDFC Bank are expected to repeat the kind of benefit Tata Motors shares received ahead of the Tata Technologies IPO. Tata Motors offloaded its stake in the Tata Group company via Tata Technologies IPO. Similarly, SBI and HDFC Bank are offloading their respective stakes in the company. Tata Technologies’ IPO was also a 100 per cent OFS, and NSDL’s IPO will also be a 100 per cent OFS,” Mahesh M Ojha, AVP — Hensex Securities, observed.
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