NSDL, India’s Oldest Depository Plans $400 Million Listing

National Securities Depository Ltd. (NSDL), India’s oldest and largest depository, is proceeding with its plan for an initial public offering (IPO) estimated to raise about $400 million. The listing, originally approved by the Securities and Exchange Board of India (SEBI) in October 2024, is likely to take place as early as July 2025, according to people familiar with the matter.

India’s Largest Depository Prepares for Public Listing

NSDL was set up in August 1996 following the enactment of the Depositories Act. It provides depository services to the Indian capital market and plays a key role in ensuring efficient and secure settlement of securities in dematerialised form. The upcoming IPO will involve the sale of 50.1 million shares, according to past disclosures by the company.

The IPO is a complete offer for sale (OFS), meaning that existing shareholders such as IDBI Bank Ltd., National Stock Exchange of India Ltd., and State Bank of India will offload their stakes. NSDL itself will not receive any proceeds from the public issue.

IPO Details and Managers

The IPO is being managed by ICICI Securities Ltd., Axis Capital Ltd., HSBC Holdings Plc, and IDBI Capital. According to sources who declined to be named due to the private nature of the discussions, the public issue is expected to raise around $400 million. NSDL’s managing director and chief executive Vijay Chandok declined to comment on the expected listing timeline.

About NSDL

NSDL is one of the largest depositories globally and a major infrastructure institution in the Indian financial system. It supports a wide range of stakeholders, including investors, brokers, custodians, and issuer companies, through its nationwide network of Depository Participants.

The organisation was established to resolve the inefficiencies of paper-based securities trading in India’s capital markets. Before NSDL, the Indian market faced issues like bad deliveries and delays in title transfers. The move to dematerialised securities significantly reduced risks and operational costs.

NSDL uses advanced technology to facilitate the smooth transfer of securities through account-based systems, similar to banking transactions. This helps in minimising risk, reducing transaction costs, and enhancing market efficiency. It also continues to develop products and services to meet the evolving needs of the financial sector.

Conclusion

The upcoming IPO of NSDL marks a major milestone in India’s financial services sector. With strong backing from major institutional investors and a significant market presence, NSDL’s listing is set to attract considerable attention from market participants when it opens.

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