NSDL shares worth ₹870 crore free up for trade as shareholder lock-in ends

Shares of National Securities Depository Ltd. (NSDL) will be in focus on Monday, November 3, as its three-month shareholder lock-in period comes to an end.

According to Nuvama Alternative & Quantitative Research, as many as 75 lakh shares of NSDL will free-up for trade as the shareholder lock-in ends. The total number of shares are amount to 4% of the company's outstanding equity.

Based on Friday's closing price, the total value of NSDL's shares that will free up for trade is worth ₹868 crore.

It must be noted that the end of the shareholder lock-in period does not mean all the shares will be sold in the open market, but they only become eligible to be traded.

Alongside NSDL, shares of Sri Lotus Developers and M&B Engineering will also free up for trade as their respective three-month shareholder lock-in period ends.

NSDL does not have any promoter shareholding and Mutual Funds also have only 1.65% stake. As of September 30, IDBI Bank (14.99%), HDFC Bank (6.95%), SBI (3%), Union Bank (2.56%) and Canara Bank (2.3%) were some of the major shareholders in the company.

Smallcap World Fund (1.62%), Deutsche Bank A.G (5%), Hong Kong and Shanghai Banking Corp (3.13%), Citibank N.A. (3.13%), were among the prominent global shareholders in NSDL.

The National Stock Exchange (NSE) features among the largest public shareholders in NSDL with a 15% stake, while as many as 8.1 lakh retail shareholders, or those with authorized share capital of up to ₹2 lakh, had a 23.47% stake in NSDL.

Shares of NSDL had ended 1.2% lower on Friday at ₹1,158.55. The stock is down nearly 20% from its post-listing high of ₹1,425, which it had surged to in just a few days of listing, even as it remains well above its IPO price of ₹800 apiece.