July 31 deadline for IPO listing: Why is NSDL unlisted price dipping?

EXCERPT: The mandate by capital markets regulator Sebi has said that NSDL (National Securities Depository Limited) has to complete the share listing process by the end of this month. However, the declining prices can be a cause of worry for the promoting institutions.

Kolkata: According to capital markets regulator Sebi, NSDL or National Securities Depository Limited, has to float an IPO and get the shares listed by July 31, 2025. "SEBI in-principle approval requires us to complete the listing process before April 13, 2024, which has been extended till July 31, 2025. If we fail to comply with this deadline, we may be required to apply for an extension or a fresh approval, which may not be granted in a timely manner, or at all,” NSDL mentioned in its draft red herring prospectus.

The IPO has been necessitated by a rule of the Sebi. Two of the promoters of NSDL are IDBI Bank and NSE. These two institutions hold 26.10% and 24% in NSDL respectively. According to a rule of SEBI, their shareholding has to be brought down to at least 15%.

However, NSDL is not the only company to suffer an erosion of price among the unlisted shares. Tata Capital and NSE have too suffered the same fate. The prices (in of these eagerly awaited IPOs have also declined by about 15-20% from their 52-week highs, said reports.

Market analysts have indicated that the dip in unlisted share price has been influenced by the HDB Financial Services IPO and its subsequent listing. The issue price of HDB Financial Services was Rs 740. The listing took place at Rs 835 on July 2. It marked a listing gain of about 12.84%. Incidentally, the issue of the HDFC Bank arm raised Rs 12,500 crore and is the biggest IPO this year. However, the listing gain compared to the issue price was a big disappointment to the grey market investors. The shares of HDB Financial Services traded at Rs 1,250 and compared at that level the listing price offered a 33.2% loss. This experience has made the grey market investors nervous and the price of the major names in this segment has been impacted.

The unlisted shares of NSDL, which commanded a price of Rs 1,250 per share on June 23 dipped to around Rs 1,025 on Friday, July 11. The extent of decline was 16%. The unlisted shares of NSE and Tata Capital have also suffered similar erosions. Tata Capital unlisted share price also fell from Rs 1,075 on June 23 to Rs 875 in the same time window. NSE's prices too went down from Rs 2,375 to Rs 2195 -- all scalded by the HDB Financial experience. The significance of June 23 is that is was 48 hours before the opening of the bidding process for the HDB Financial IPO which opened on June 25, 2025.