HDFC Bank to sell 2% stake in NSDL IPO via OFS
Lender's 8.95% holding in NSDL means it is involved in the settlement of the vast majority of dematerialized securities traded on India's stock exchange.
Money Poise
NEW DELHI - The private financial institution HDFC Bank intended to participate in the initial public offering (IPO) of NSDL by making an offer for sale (OFS) of a maximum 2% share in the company. As indicated in the Draft Red Herring Prospectus dated July 7, the firm stated in a filing that it will "offload through an offer for sale of up to 2% equity stake held by the Bank in NSDL." "We wish to inform you that HDFC Bank will offload through an offer for sale of up to 2% equity stake held by the Bank in NSDL," the company said.
This is on top of the previous divestiture of a 1% stake in NSDL that took place through definitive agreements in December of the previous year and met the criteria for being considered significant. The Bank's stake in NSDL was 8.95% at one point. In order to raise capital through the initial public offering (IPO), the market infrastructure organization NSDL, which is registered with SEBI, submitted its draft prospectus to the markets regulator yesterday. The financial and securities markets can take advantage of NSDL's comprehensive selection of goods and services. After the Depositories Act was passed in 1996, the National Securities Depository Limited (NSDL) was a forerunner in the dematerialization of securities in India. The organization is the most significant depository in India as of the month of March 2023 in terms of the number of issuers, the number of active instruments, the market share in the demat value of settlement volume, and the value of assets held under custody.
The offer includes an over-the-counter sale of up to 57,260,001 equity shares. IDBI Bank will be offloading 22,220,000 equity shares as part of the OFS, while NSE will be selling 18,000,001 equity shares, Union Bank of India will sell up to 5,625,000 equity shares, and State Bank of India will sell up to 4,000,000 Equity Shares. Among the other shareholders who are selling their shares is the Administrator of the Specified Undertaking of the Unit Trust of India.
The offer reserves a certain number of equity shares for subscription by employees who meet the requirements.
It is possible that NSDL and the selling shareholders, after consulting with the book-running lead managers, will provide a qualified employee bidding in the employee reservation portion with a price reduction on the offer price.
It is proposed that the shares of the company be listed on the BSE.
ICICI Securities, Axis Capital, HSBC Securities and Capital Markets (India), IDBI Capital Markets and Securities Ltd, Motilal Oswal Investment Advisors Ltd, and SBI Capital Markets Ltd are the book-running lead managers for the issue. SBI Capital Markets Ltd is also a lead manager for the offering.
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