State Bank of India (SBI) today said it proposes to sell 2% stake by offloading 40 lakh shares in depository organisation NSDL.
State Bank of India proposes to participate in an Initial Public Offering (IPO) of National Securities Depositories Limited (NSDL) by way of offer for sale of up to 2% equity stake held by the Bank in NSDL (being up to 40,00,000 equity shares).
The bank intends to participate in an Initial Public Offering (IPO) of National Securities Depositories Limited (NSDL), SBI said in a regulatory filing.
SBI holds 5 per cent stake in the NSDL while it intends to divest 2 per cent in the Offer For Sale (OFS) subject to the terms of the proposed IPO, it said.
The divestment through the IPO by way of an offer for sale of up to 2% equity stake is subject to the terms of the proposed IPO, and subject to such flexibility on pricing, timing and other IPO considerations, as may be permitted under applicable law,” SBI said.
NSDL is a depository set-up to carry on, regulate and manage the business of providing depository and clearing and settlement services in respect of securities and instruments of all kinds.
It has three operating segments — depository, database management services, and banking services.
Also, HDFC Bank will sell a 2% stake in the initial public offering (IPO) of National Securities Depository (NSDL), the lender informed exchanges on Sunday.
The lender holds a 8.95% stake in NSDL, which handles most of the securities held and settled in dematerialised form in the Indian capital market.
In its draft red herring prospectus (DRHP) dated July 7, the depository said the IPO will see sales of 57.3 million shares by its six shareholders.
IDBI Bank will sell up to 22.2 million shares, while National Stock Exchange will sell 18 million shares it owns in the depository.
Union Bank of India will sell 5.62 million shares, and State Bank of India, and Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) will sell 4 million and 3.4 million shares, respectively. The sixth shareholder participating in the IPO is HDFC Bank.”
*With inputs agencies
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Updated: 10 Jul 2023, 09:57 PM IST