NSDL Updates IPO Draft, Reduces Offer Size to 50.15 Million Shares

According to the news reports, The National Securities Depository Ltd. (NSDL) has revised its draft red herring prospectus (DRHP) and reduced the size of its upcoming Initial Public Offering (IPO). According to the addendum filed with the Securities and Exchange Board of India (SEBI), the IPO will now consist of 50.15 million shares, lower than the 57.26 million shares initially proposed in July 2023.

Entirely an Offer-for-Sale

The IPO will be entirely an offer-for-sale (OFS), with no fresh issue of shares. NSDL itself will not receive any proceeds from the offering. Existing shareholders, including IDBI Bank, National Stock Exchange (NSE), HDFC Bank, State Bank of India, and Union Bank of India, will be selling part of their holdings.

IDBI Bank will offload more than 22 million shares, amounting to an 11.11% stake. NSE will divest around 18 million shares, or 9%. Other shareholders such as HDFC Bank, Union Bank of India, and SBI will together sell over 3%, while remaining investors will contribute around 2%. Currently, IDBI and NSE hold 26% and 24% stake in NSDL, respectively. And HDFC Bank holds nearly 9% stake.

Regulatory Timeline and Extension

SEBI had approved NSDL’s IPO proposal in October 2024. In early 2025, the depository was granted an extension until July 31, 2025, to launch the issue, citing market conditions. As a market infrastructure institution, NSDL requires additional regulatory clearances before proceeding with the listing.

Read more: SEBI Allowed NSDL IPO: HDFC Bank To Pare Shares

Lead Managers

The issue is being managed by ICICI Securities, Axis Capital, HSBC Securities, SBI Capital Markets, Motilal Oswal Investment Advisors, and IDBI Capital Markets & Securities.

Conclusion

With the revised share count and extended timeline, NSDL is preparing to move forward with its IPO in the coming months, subject to remaining approvals.

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