NSDL IPO Set to Deliver Exceptional Returns for Institutional Shareholders
NSDL is launching a Rs 4,000 crore IPO priced at Rs 760-800 per share from July 30 to August 1. Structured as an offer for sale, it allows existing shareholders to divest stakes. Institutional investors like SBI, IDBI Bank, and NSE stand to gain extraordinary returns, with potential gains of up to 39,900%. The IPO also helps IDBI Bank and NSE comply with regulatory shareholding limits. NSDL's Q3 consolidated net profit increased by 29.80% year-on-year to Rs 85.80 crore. The IPO values NSDL at a P/E ratio of 46.60, lower than its listed peer CDSL.
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The National Securities Depository Limited (NSDL) is gearing up for a significant Initial Public Offering (IPO) that promises to deliver substantial returns for its institutional shareholders. The Rs 4,000 crore IPO, priced at Rs 760-800 per share, is structured as an offer for sale, allowing existing shareholders to divest their stakes.
Key Highlights
- NSDL's IPO is priced at Rs 760-800 per share
- The public subscription period is from July 30 to August 1
- The IPO is structured as an offer for sale by existing shareholders
Remarkable Returns for Institutional Investors
The IPO is set to generate extraordinary returns for institutional shareholders who acquired their stakes at significantly lower prices:
| Shareholder | Shares Selling | Acquisition Price | Potential Returns | Return Percentage |
|---|---|---|---|---|
| SBI | 40.00 lakh | Rs 2/share | Rs 320 crore | 39900.00% |
| IDBI Bank | 222.00 lakh | Rs 2/share | Rs 1,776 crore | 39900.00% |
| NSE | 180.00 lakh | Rs 12.28/share | Rs 1,418 crore | 6176.00% |
Regulatory Compliance
The IPO serves a dual purpose for some institutional shareholders:
- IDBI Bank needs to reduce its stake from 26.10% to comply with the 15% regulatory limit
- NSE is required to decrease its shareholding from 24% to meet the same 15% threshold
NSDL's Financial Performance
NSDL has demonstrated strong financial growth:
- Q3 consolidated net profit: Rs 85.80 crore (29.80% year-on-year increase)
- Q3 total income: Rs 391.20 crore (16.20% year-on-year growth)
Valuation Comparison
The IPO values NSDL at a price-to-earnings (P/E) ratio of 46.60, which is lower than its listed peer, Central Depository Services Limited (CDSL), which trades at a P/E ratio of 66.60.
This IPO represents a significant milestone for NSDL and its institutional shareholders, offering them an opportunity to realize substantial returns on their long-term investments while aligning with regulatory requirements.
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