Depository firm NSDL is making strides towards launching its highly anticipated ₹3,000-crore initial public offering (IPO), with plans to unveil it by next month. A senior official revealed that while the company is eager to move forward, it requires several key approvals, particularly from the Securities and Exchange Board of India (SEBI), before the IPO can proceed.
NSDL’s IPO Timeline
The National Securities Depository Ltd (NSDL) is racing against the clock as the deadline for its draft red herring prospectus (DRHP) approaches. The official stated, “We are working diligently to meet the deadline. There’s a strong push to launch the IPO before our timelines expire next month.” This urgency stems from the need for MII approval from SEBI, which is crucial for the firm that manages a significant number of India’s dematerialized accounts.
Market Conditions and Challenges
When asked if the current volatile market conditions were causing delays, the official noted that despite the fluctuations, some IPOs are still making their way to market. They acknowledged that the sheer volume of work required has created challenges on the manpower front, which has also contributed to the timeline concerns.
Financial Performance Insights
NSDL received approval from SEBI for its IPO back in September 2022. Recent financial reports revealed that NSDL experienced a 30% increase in its net profit for the December quarter, totaling ₹85.8 crore, compared to ₹66.09 crore during the same period the previous year. Additionally, the company’s total income rose by 16.2%, reaching ₹391.21 crore in the October-December 2024 timeframe.
Participation of Major Players
In this upcoming issuance, industry giants such as NSE, State Bank of India (SBI), and HDFC Bank are set to offload a total of 5.72 crore equity shares, marking a significant offer for sale (OFS). This move is expected to bolster NSDL’s position in the market and attract substantial investor interest.
As NSDL gears up for its IPO, all eyes are on how the firm navigates regulatory requirements and market dynamics to finalize its launch. Stay tuned for what promises to be a significant development in the Indian financial landscape.
