IPO Details
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IPO Timeline
Issue Highlights
Initial public offering of up to 57,260,001 equity shares of face value of Rs. 2 each (Equity Shares) of National Securities Depository Limited (the Company or the Issuer) for cash at a price of Rs. [] per equity share (including a share premium of Rs. [] per equity share) (Offer Price) through an offer for sale of up to 57,260,001 equity shares aggregating to Rs. [] crores, comprising up to 22,220,000 equity shares aggregating to Rs. [] crores by Idbi Bank Limited, up to 18,000,001 equity shares aggregating to Rs. [] crores by National Stock Exchange of India Limited, up to 5,625,000 equity shares aggregating to Rs. [] crores by Union Bank of India, up to 4,000,000 equity shares aggregating to Rs. [] croresn by State Bank of India, up to 4,000,000 equity shares aggregating to Rs. [] crores by Hdfc Bank Limited (ss) and up to 3,415,000 equity shares aggregating to Rs. [] crores by Administrator of the specified undertaking of the unit trust of india (collectively referred to as the Selling Shareholders and such equity shares offered by the selling shareholders, the Offered Shares) (the Offer for Sale or the Offer). The offer includes a reservation of up to [] equity shares aggregating to Rs. [] crores (constituting up to []% of the post-offer paid-up equity share capital of the company) for subscription by eligible employees (the Employee Reservation Portion). The company and the selling shareholders, in consultation with the brlms, may offer a discount of up to []% of the offer price to the eligible employees bidding in the employee reservation portion (Employee Discount). The offer less the employee reservation portion is hereinafter referred to as the Net Offer. The offer and the net offer shall constitute []% and []%, respectively, of the post-offer paid-up equity share capital of the company, respectively. The face value of the equity share is Rs. 2. The offer price is [] times the face value of the equity shares. The offer price, the price band, the employee discount (if any) and the minimum bid lot will be decided by the company.
National Securities Depository Company Background
The National Securities Depository is a SEBI-registered market infrastructure institution (MII) offering a wide range of products and services to India's financial and securities markets.
As a depository, it provides a robust framework that enables market participants to participate in India's financial and securities markets. Using innovative and flexible technology systems, NSDL supports investors, brokers and other market participants in the Indian capital markets and aims to ensure the safety and soundness of the Indian securities market by developing settlement solutions that increase efficiency, minimise risk and reduce costs.
National Securities Depository Competitive Strengths
India’s first and leading depository operating a wide range of technology-driven businesses
They are India's premier depository, holding the top position in terms of issuers, active instruments, demat value market share, settlement volume, and assets under custody as of March 31, 2023 (Source: CRISIL Report). Pioneering dematerialisation in the country, they revolutionised the securities landscape and were among the first global depositories to directly implement dematerialisation, bypassing the traditional two-step process (Source: CRISIL Report).
A stable revenue base with a significant proportion of recurring revenue
Their revenue stability is anchored in annual fees and custody fees, offering a consistent income stream less influenced by market cycles compared to transaction charges (Source: CRISIL Report). The core depository services form a foundation for steady recurring revenues, fortifying their business model. Beyond core services, additional recurring revenue is generated through specific offerings.
Large Variety of Asset Classes held in Demat Accounts and Well-diversified Business Verticals
They maintain a robust position in the depository market, boasting a diverse array of asset classes within their demat accounts. These encompass equities (listed and unlisted), preference shares, warrants, funds (mutual funds, REITs, InvITs, and AIFs), as well as various debt instruments (corporate debt, commercial paper, certificates of deposit, pass-through certificates, structured obligations, government securities, sovereign gold bonds, municipal debt, treasury bills, state development loans), and electronic gold receipts. As of March 31, 2023, they held approximately 84.03% and 88.39% of total securities in terms of numbers and values, respectively (Source: CRISIL Report).
Risk Factors
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A shift in investor preferences away from securities may reduce demand for their services, impacting their business.
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A failure to expand service offerings and market reach through continued innovation and development of new products can impact its business.
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A large proportion of the company’s business is transaction-based and reliant on high trading volumes in the securities market.
Key Strategies
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Continue to focus on the growth potential and increase market penetration by leveraging company strengths.
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Continue to invest in and upgrade its IT infrastructure systems for the enhancement of operational efficiency, service quality and operational resilience.
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Increase the market share of its payments bank business.
National Securities Depository Key Financials
Here are the key financials for National Securities Depository Limited:
Particulars (in Rs. million)
Particulars (in Rs. million)
How to apply for IPO through ASBA
Kotak Securities
•04m 01s
How to apply for an IPO using UPI
Kotak Securities
•01m 19s
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
How To Apply for National Securities Depository Ltd IPO?
Here are the steps to apply for National Securities Depository Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
NSDL IPO FAQs
What is the National Securities Depository Limited IPO?
The National Securities Depository Limited IPO has an issue size of Rs. __ crores. The IPO opens for subscription on xx Month Year and closes on xx Month Year.
Who is the Registrar for National Securities Depository Limited IPO?
Link Intime India Private Limited is the registrar for this IPO.
Where can I read more about National Securities Depository Limited’s business?
You may read more about National Securities Depository Limited and its IPO from the company’s draft red herring prospectus (DRHP) here
