NSDL IPO delayed again: 5 critical factors behind the latest hold-up and what it means for investors

The National Securities Depository IPO has once again got an extension for the listing deadline. The market regulator SEBI has given an in-principle approval for extending the deadline to list on the bourses before or by August 14, 2025. The earlier date was July 31, 2025. This is the second extension SEBI has given to NSDL for listing on the exchanges. Earlier, the company sought the extension for listing from April 13, 2024, to July 31, 2025. “SEBI in-principle approval requires us to complete the listing process before April 13, 2024, which has been extended till July 31, 2025. If we fail to comply with this deadline, we may be required to apply for an extension or a fresh approval, which may not be granted in a timely manner, or at all,” said NSDL in its Addendum to Draft Red Herring Prospectus (DRHP). Also, NSDL cut its IPO size to 5.01 crore shares, compared to 5.73 crore shares stated earlier in the DRHP. When the depository giant filed its papers with SEBI, it got the NOC (No Objection Certificate) on April 13, 2023 and had asked the company to finish its entire listing process by April 13, 2024. That is within one year from the date of issuance of in-principle approval. Why is NSDL delaying listing of its shares? The National Stock Exchange of India (NSE) and IDBI Bank have not yet reduced their holdings in NSDL to a permissible level. To meet this requirement, both stakeholders requested an extension, causing a postponement in NSDL’s listing. As per a SEBI regulation, any ownership or voting rights in a company involved in the depository business that exceed 15% must be reduced to the allowed limit within five years from the initiation of SEBI D&P Regulations, which began on October 2, 2023. NSDL IPO: Unlisted share prices crack 20% In the unlisted market, shares of NSDL have corrected 20% from 52-week highs after HDB Financial IPo price band was announced. This was because the issue price was at a significant 50% discount to the unlisted share rates. Investors became apprehensive about a similar situation for NSDL issue price too. However, they were seeing some pick-up as the street was expecting an IPO launch soon. That led to some increase in its GMP ahead of the datwe announcement. The shares were changing hands at a grey market premium of Rs 165, compared to a GMP of Rs 138 a week ago. NSDL IPO: Depository’s business The depository was established in April 2012 under the name “NSDL Depository Ltd.” The organisation is a registered market infrastructure institution (MII) recognised by SEBI. NSDL offers electronic infrastructure for dematerialising securities and enables the electronic settlement of trades in the Indian securities market. Biggest subsidiary NSDL generates a significant portion of its income from its banking services subsidiary, NPBL, which was established in August 2016. NPBL, or NSDL Payments Bank Ltd., is a payments bank that started its business operations on October 29, 2018. It is involved in the payment banking sector. NSDL possesses complete ownership and voting rights in NPBL. NSDL IPO: Lead book manager and registrar The issue will be listed on both the stock exchanges – NSE and BSE. ICICI Securities is working as the lead manager for the IPO, while MUFG Intime India (Link Intime) will serve as the registrar.

NSDL IPO delayed again: 5 critical factors behind the latest hold-up and what it means for investors

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