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.
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.
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.
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.