NSDL Nears IPO Deadline as Unlisted Shares Dip 20%, Contrasting CDSL's 44% Surge
By ScanX News Team
National Securities Depository Ltd (NSDL) is set to launch its IPO next week, aiming to raise up to $500 million through an offer-for-sale structure. Major shareholders will divest stakes, with NSDL receiving no proceeds. NSDL's unlisted shares have seen a 20% correction, contrasting with competitor CDSL's 44% rally. Despite this, NSDL maintains dominance in key metrics like demat asset value under custody (89%) and average custody value per account (Rs 1.25 crore). The IPO comes as NSDL approaches the SEBI-mandated listing deadline of July 31.
*this image is generated using AI for illustrative purposes only.
National Securities Depository Ltd (NSDL), India's leading depository by asset value, is on the brink of its stock market debut as it approaches the SEBI-mandated listing deadline of July 31. The company is poised to launch its Initial Public Offering (IPO) next week, with plans to raise up to $500 million through an entirely offer-for-sale structure.
IPO Details
The upcoming IPO will see the sale of 5.01 crore shares, with major shareholders including IDBI Bank, National Stock Exchange of India, and State Bank of India divesting their stakes. It's important to note that NSDL itself will not receive any proceeds from this offering.
Market Dynamics
In an interesting turn of events, NSDL's unlisted shares have experienced a significant correction, dropping nearly 20% from their 52-week highs. The share price has fallen from Rs 1,275.00 to approximately Rs 1,025.00. This decline stands in stark contrast to the performance of NSDL's listed competitor, Central Depository Services Ltd (CDSL), which has seen a remarkable 44% rally over the past year.
Comparative Analysis
Despite the recent share price correction, NSDL maintains a dominant position in several key metrics:
| Metric | NSDL | CDSL |
|---|---|---|
| Demat Asset Value Under Custody | 89.00% | 11.00% |
| Number of Issuers | 64,535 | N/A |
| Average Custody Value per Account | Rs 1.25 crore | N/A |
| Number of Demat Accounts | 3.88 crore | 14.65 crore |
While NSDL leads in institutional metrics, CDSL has a stronger retail presence with a significantly larger number of demat accounts.
Market Perspective
Market analysts view the recent correction in NSDL's unlisted shares as a recalibration rather than an indication of structural weakness. This adjustment is attributed to softening investor expectations and a broader de-rating trend observed in financial infrastructure stocks.
Growth Outlook
Both NSDL and CDSL are well-positioned for growth, with opportunities extending beyond traditional equity markets. The depositories are expected to benefit from the expansion into new asset classes, potentially driving future performance.
As NSDL prepares for its market debut, investors and market watchers will be keenly observing how it performs post-listing, especially in comparison to its already listed rival, CDSL. The contrasting share price movements of these two depositories highlight the dynamic nature of the market and the different factors influencing investor sentiment in the run-up to an IPO.
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