NSDL is Predicted to Raise Rs. 4,500 Cr from its IPO

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NSDL is Predicted to Raise Rs 4500 Cr from its IPO

06 Sep 2023

NSDL, or the National Securities Depository Limited, established in 1996, was opened when the Depositories Act was in force. The company is soon to come out with an IPO and is most likely to raise an amount of Rs 4,500 crore out of primary markets with a valuation at Rs 16,000-17,000 crore. This is India's first and largest company of depository services, the National Securities Depository Limited (NSDL). NSDL has begun talks with applicable investment banks for the purpose of launching an IPO (initial public offering). The NSDL IPO is awaited by many investors who are avid players in the share market today.

Some Statistics About the NSDL IPO

When you open a demat account, it is normally to invest in equity. You do not necessarily have to open a demat account when you are subscribing to any upcoming IPO. Once you know this, you should be aware of some facts and stats concerning the upcoming IPO to be launched by NSDL. As of 31 May, 2022, NSDL has successfully managed above 2.76 crore accounts of investors with a demat custody valued at Rs. 297.55 lakh crore. Furthermore, the company has above 89% market share with regards to value of demat assets.

According to reports, the National Securities Depository Limited has been in talks, and these are ongoing, with a range of top Indian and international investment banking firms. This issue of the upcoming IPO will largely comprise a secondary sale of stakes, letting existing investors exit holdings in the company.

About Current Stakeholders

With the share market today, investing in a stock entails you having to do some research on the company stock you buy, if you are a serious investor. You have to know about any upcoming IPO you may want to apply to in the same manner. In the current state of the company, IDBI Bank holds 26% of the company stock. The NSE, or National Stock Exchange, holds 24% of the stock in the company. Other holdings include those by the State Bank of India (5%), the Union Bank of India (2.8%) and the Canara Bank (2.3%). The remaining shareholders of the National Securities Depository Limited are made up of the Specific Undertaking of the Unit Trust of India, or SUUTI, Citibank, HDFC Bank, Kotak Mahindra Life Insurance, HSBC, the IIFL Special Opportunities Fund, Deutsche Bank and Standard Chartered Bank.

The Upcoming IPO Is Worth It

Prior to the upcoming IPO which is to be launched by the NSDL, its contemporary, the CDSL, or Central Depository Services Limited launched an IPO in 2017, going public very successfully with its issue being oversubscribed 170 times! If this is anything to go by, the upcoming IPO of NSDL should be worth investing in. While you think of investment, you can also consider investing in a large number of stocks on the stock exchanges. You can conveniently open a demat account online and begin your trading after doing some background work while you wait for the NSDL IPO to emerge for subscription. Stay updated on the latest Upcoming IPO 2023!

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What are the Benefits of Commodity Trading?

On opening a commodity trading account linked to a Demat account, you can get a load of benefits when you engage in this kind of trading. Commodity trading is a super channel for any investor who wants to hike up their pool of finances. Below mentioned, are some of the advantages of commodity trading whether trading commodities on the MCX or any other exchange:

Diversification

For a financial portfolio to be balanced, weighing potential risks, it has to be diversified in a way that assets are allocated equally. Commodity trading is a perfect way to diversify asset allocation, reducing the risk factor in a portfolio.

Reduced Manipulation

The stock market and exchanges are typically regulated by price shifts that are global in nature. This eliminates the risk of any manipulation in price that may occur internally.

Inflation Hedge

The prices of commodities can prove to be a safeguard against inflation. In contrast to any other investment instrument, commodity prices move in a way that is the same as inflation. This is because inflation is the result of high prices of commodities in the first place. Hence, commodity prices can be predictable in a sense. Furthermore, the prices of commodities are bound to rise during high inflation periods in the nation and profits may be earned thereof.

What are capital bonds?

Capital bonds, also known as 54EC bonds, are debt instruments that give you a fixed return on your investment. If you sell a house property and earn capital gains thereon, you can enjoy tax exemption by investing in these bonds. When you invest in a capital bond, you get to earn interest at a fixed rate. The interest is calculated on the face value of the bond. And it is paid out at regular intervals. Once the bond matures, you will have to redeem the instrument.

Sectorial performance question

How do I Invest in capital gain bonds?

Capital gain bonds are issued by REC (Rural Electrification Corporation Ltd), PFC (Power Finance Corporation Ltd) and NHAI (National Highways Authority of India) and IRFC (Indian Railways Finance Corporation Limited). They are not listed on any exchange. So, if you want to invest in capital bonds, you will have to buy them directly from the issuer - either in the physical form or in the demat form. You can invest up to Rs. 50 lakh in these bonds.

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