NSDL files addendum to DRHP; IPO launch expected soon

The National Securities Depository Ltd (NSDL) has filed an addendum to its Draft Red Herring Prospectus (DRHP) as it gears up for its much-awaited initial public offering (IPO). The offering is expected to open as early as May 2025, after the Securities and Exchange Board of India (SEBI) issued its final observations on September 30, 2024—more than a year after the original DRHP was filed in July 2023.

The IPO will be conducted through an offer for sale (OFS) route, with six existing shareholders planning to pare their stakes. These include National Stock Exchange (NSE), IDBI Bank, HDFC Bank, Union Bank of India, State Bank of India (SBI), and the Government of India’s SUUTI. The stake sale will help these institutions comply with SEBI’s 15% ownership cap in market infrastructure entities.

Key highlights:
IPO size: Estimated at around ₹3,000 crore

Objective: Align with SEBI’s ownership norms and reduce concentration risk

Current shareholding: NSE holds 24%, while IDBI Bank owns 26% in NSDL

Expected launch: Likely in May 2025, following updated financial disclosures in the DRHP addendum

The listing of NSDL, one of India’s two major depositories, is seen as a significant step toward increasing transparency and regulatory compliance within the country’s market infrastructure framework.