NSE Set for Massive 6,415% Return on NSDL Investment as IPO Opens
By ScanX News Team
The National Stock Exchange (NSE) is poised for a 6,415% return on its investment in NSDL as the depository's IPO opens. NSE's initial Rs 59 crore investment for a 24% stake is now valued at Rs 3,840 crore. NSE is selling 1.80 crore shares to reduce its stake to 15%, potentially generating Rs 1,418 crore. The NSDL IPO, valued at Rs 4,012 crore, involves the sale of 5.01 crore shares by existing shareholders. Other major shareholders, including IDBI Bank, are also set for significant returns. The IPO is priced between Rs 760 to Rs 800 per share, with listing scheduled for August 6 on BSE.
*this image is generated using AI for illustrative purposes only.
The National Stock Exchange (NSE) is poised for a remarkable financial windfall as the National Securities Depository Limited (NSDL) Initial Public Offering (IPO) opened on July 30. The NSE's strategic investment in NSDL is set to yield an astounding 6,415% return, showcasing the exchange's foresight and the depository's significant growth over the years.
NSE's Investment and Returns
NSE's initial investment of Rs 59.00 crore for a 24% stake in NSDL, acquired at Rs 12.28 per share, has now ballooned to a valuation of Rs 3,840.00 crore. This valuation is based on the upper price band of Rs 800.00 per share set for the IPO, reflecting the substantial appreciation in NSDL's value since NSE's initial investment.
Regulatory Compliance and Share Sale
In compliance with the Securities and Exchange Board of India's (SEBI) regulations, which cap ownership in depositories at 15%, NSE is divesting a portion of its holdings. The exchange is selling 1.80 crore shares, which will reduce its stake from 24% to 15%. This sale is expected to generate proceeds of Rs 1,418.00 crore for NSE.
IPO Details
The NSDL IPO, valued at Rs 4,012.00 crore, involves the sale of 5.01 crore shares by existing shareholders. Apart from NSE, other major shareholders participating in the share sale include:
- IDBI Bank
- State Bank of India (SBI)
- Union Bank of India
- HDFC Bank
- Canara Bank
- India Infrastructure Finance Company Limited (IIFCL)
Impressive Returns for Other Shareholders
NSE isn't the only entity reaping substantial returns from the NSDL IPO. IDBI Bank, another major shareholder, is set to achieve an extraordinary return of nearly 39,900% on its investment. IDBI Bank had purchased its shares at a mere Rs 2.00 each, highlighting the dramatic increase in NSDL's valuation over time.
Anchor Investors and IPO Pricing
The IPO has already garnered significant interest from institutional investors, raising Rs 1,201.00 crore from anchor investors. Life Insurance Corporation of India (LIC) led the anchor investment round with a contribution of Rs 144.00 crore, underscoring the strong institutional backing for NSDL.
The IPO is priced in the range of Rs 760.00 to Rs 800.00 per share, allowing investors to participate in the growth story of one of India's leading depositories.
Listing Date
Investors and market watchers can mark their calendars for August 6, when NSDL shares are scheduled to list on the Bombay Stock Exchange (BSE).
This IPO not only represents a significant liquidity event for NSDL's existing shareholders but also offers public investors an opportunity to invest in a critical infrastructure entity in India's securities market. The substantial returns realized by early investors like NSE and IDBI Bank underscore the growth trajectory of NSDL and its crucial role in India's financial ecosystem.
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