The country's largest bank State Bank of India (SBI) on Monday, July 10, said it will sell up to 2 percent (40,00,000 equity shares) stake in the initial public offering (IPO) of the National Securities Depository (NSDL) via an offer for sale (OFS). The bank holds a 5 percent stake in NSDL.

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The offer will see existing shareholders like NSE, Union Bank of India, State Bank of India, HDFC Bank, IDBI Bank, among others, selling their shares.

NSDL's offer will comprise 5.72 crore equity shares of face value of Rs 2 each. The price will be determined at a later date. ICICI Securities, Axis Capital, HSBC, IDBI Capital, Motilal Oswal, and SBI Capital Markets are the book running lead managers for the issue.

A certain portion of the issue will be reserved for eligible employees as well, and the company may offer a discount to the eligible employees on the IPO price.

One-third of the anchor investor portion shall be reserved for the domestic mutual funds, subject to valid bids being received from them at or above the anchor investor allocation price. In case of undersubscription, the same will be allotted to the QIB (qualified institutional buyer) portion, according to the DRHP.

As of financial year 2023, NSDL earned revenue of Rs 1,099.8 crore, which was 33.95 percent higher than the Rs 821 crore it earned in fiscal 2022. It made a net profit of Rs 234.8 crore, which was also higher than the Rs 212 crore it earned during FY 2022.

NSDL is incorporated to regulate and manage the business of providing depository and clearing and settlement services in respect of securities and instruments of all kinds.

As of March 31, 2023, it is the largest depository in India in terms of the number of issuers, number of active instruments, market share in demat value of settlement volume, and value of assets held under custody.

(Edited by : Shoma Bhattacharjee)

First Published:Jul 10, 2023 9:15 PM IST