- Date : 11/07/2023
- Read: 3 mins
NSDL is eyeing to list itself on the stock exchange and has filed its DRHP with SEBI for the same purpose. Will it be able to match CDSL’s performance?
One of the leading depositories of India, National Stock Depository Limited (NSDL), has recently filed its Draft Red Herring Prospectus (DRHP). The company is eyeing its IPO to go public and is awaiting the Securities and Exchange Board of India’s (SEBI) approval. While SEBI is yet to give its nod, parallels are already being drawn between NSDL and its contemporary, CDSL (Central Stock Depository Limited) as both are the leading depositories of India. While CDSL’s stock has delivered a good performance since its listing, analysts are wondering whether NSDL would be able to match the same and yield profits for investors.
- NSDLhas filed its DRHP with SEBI for launching its IPO
- NSDL is one of the two leading depositories in India. The other is CDSL
- NSDL is the largest depository participant in India
- The company had reported lower profits than CDSL
About NSDL
NSDL is an Indian depository that converts stocks, mutual funds, and other instruments into electronic format for investors. NSDL is a Market Infrastructure Institution (MII) and is registered with SEBI. After the financial year 2022-23 which ended on 31st March 2023, NSDL was recognised as the largest Indian depository.
NSDL works in the financial sector and has three sources of revenue generation which are described below:
- Transaction fee for the services rendered
- Annual account maintenance charges from investors
- The charge for corporate actions taken on behalf of account holders
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NSDL Financials
Here’s a look at the financial performance of the company over the last couple of years –
Moreover, as of 10th July 2023, NSDL’s shares have generated a return of 15% over the last month, 8% in the last year and 350% in the last 5 years.
Details of the IPO
The IPO details are as follows –
- The IPO would consist of an Offer for Sale by the company’s promoters who would be selling 5.726 crore shares.
- No fresh issue of equity shares is included
- The shareholders who are diluting their shares include IDBI Bank, SBI, HDFC Bank, NSE and the Union Bank of India
NSDL v/s CDSL
NSDL has reported a revenue of ₹1099.8 crores whereas CDSL reported a revenue of ₹620.9 crores. However, when it comes to net profit, NSDL’s profit of ₹212 crores is overshadowed by CDSL’s profit of ₹277 crores.
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The bottom Line
More details of the IPO have not been revealed. After listing, how the stock would perform is yet to be seen but investors might invest in the IPO given the market share that NSDL enjoys.
Also Read – Did you know what is confidential IPO filing?
