NSDL in talks with Investment Banks for ₹4500 cr IPO

National Securities Depository Ltd (NSDL), India’s first and largest depository services company, has initiated a conversation with investment banks for an initial public offering worth ₹4,500 crore, people aware of the development said.

NSDL was set up in 1996 after the enactment of the Depositories Act. As of 31 May, it had over 27.6 million investor accounts, with a Demat custody value of ₹297.55 trillion. The depository has a market share of more than 89% in terms of demat assets value.

India’s only other depository Central Depository Services (India) Ltd (CDSL) went public in 2017, raising ₹524 crores in an IPO which was subscribed 170 times. CDSL was set up in 1999.

“NSDL has initiated talks on its planned IPO. Most top domestic and foreign investment banks are vying for the IPO mandate, and the mandates may be finalized in the next few weeks. The IPO is mostly going to be a secondary share sale by existing investors, while some small amount may be raised as part of the IPO. Most shareholders of the company, including several public sector bank shareholders and other investors in the company, are likely to sell part of their shareholding through the IPO,” one of the people cited above said on condition of anonymity.