Leading depository National Securities Depository Ltd (NSDL) has received approval from the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO), according to an update from the regulator on Tuesday.
In addition to NSDL, Standard Glass Lining Technology and Zinka Logistics Solutions have also received Sebi’s go-ahead to raise funds through initial share sales.
NSDL’s IPO will be a complete offer for sale (OFS) of more than 5.72 crore equity shares by its shareholders, which include the National Stock Exchange of India (NSE), State Bank of India (SBI), and HDFC Bank, according to its draft red herring prospectus (DRHP).
Sebi's approval comes over a year after the depository submitted its preliminary IPO papers in July 2023. NSDL received the regulator’s observation on 30 September, the update said.
In Sebi's terms, receiving an observation equates to permission to launch a public issue.
Under the OFS, IDBI Bank plans to divest 2.22 crore shares, NSE will offload 1.80 crore shares, Union Bank of India will sell 56.25 lakh shares, while SBI and HDFC Bank will each sell 40 lakh shares.
Since the public issue is entirely an OFS, NSDL will not receive any proceeds from the IPO.
Registered with Sebi as a market infrastructure institution, NSDL provides a wide range of products and services to India’s financial and securities markets. Established after the introduction of the Depositories Act in 1996, NSDL led the dematerialisation of securities in India in November that year.
The listing of NSDL would make it the country’s second publicly traded depository, following the listing of Central Depository Services (CDSL) on the NSE in 2017.
Separately, Standard Glass Lining Technology and Zinka Logistics Solutions received Sebi’s observation on 1 and 3 October, respectively. Both companies had filed their draft IPO papers with Sebi in July 2024.
Hyderabad-based Standard Glass Lining Technology is planning a Rs 600-crore IPO, consisting of a fresh issue of shares worth up to Rs 250 crore and an OFS of 1.84 crore shares worth Rs 350 crore.
The firm, which manufactures specialised engineering equipment for the pharmaceutical and chemical industries, will use proceeds from the fresh issue to repay debt, fund inorganic growth, and for general corporate purposes.
Bengaluru-based Zinka Logistics Solutions' IPO will include a fresh issue of Rs 550 crore and an OFS of up to 2.16 crore equity shares by promoters and investor shareholders.
The company plans to use proceeds from the fresh issuance to fund sales and marketing efforts, invest in Blackbuck Finserve to enhance its capital base, and finance product development and other corporate expenses.
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