NSDL IPO: Existing shareholders from NSE to IDBI Bank gain up to 400x on their investment

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Securities Depository Ltd. (NSDL)'s ₹4,011 crore IPO opens for subscription today and the issue is purely an Offer For Sale (OFS), which means only existing shareholders are paring their stake in the company, with no proceeds going to NSDL. Existing shareholders include IDBI Bank, NSE, Union Bank of India, State bank of India and HDFC Bank. These investors are set to make returns ranging from 65x to as high as 400x on their investment. Here's a look at the list:

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IDBI Bank | The lender is set to sell 2.2 crore shares in the IPO. At the upper end of the price band, which is ₹800 per share, it will fetch the lender a sum of ₹1,778 crore. Based on the average acquisition cost of these shares, which is ₹2 each, as per the RHP, this will imply a gain of 400x on its initial investment for the bank.

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NSE | The stock exchange will also be one of the selling shareholders in the IPO, selling 1.8 crore shares, which, at the upper end of the price band, will fetch ₹1,440 crore. Based on the average acquisition cost of ₹12.28 per share, NSE will make a 65x return on its initial investment through this stake sale.

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State Bank of India | India's largest lender will also be selling up to 40 lakh shares in the IPO, bringing it a sum of ₹320 crore through the sale. Based on the average acquisition cost of ₹2 each, SBI too, will make a 400x return on its investment in NSDL.

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HDFC Bank | India's largest private lender will also be selling 20 lakh shares through this IPO, although their acquisition cost is on the higher side at ₹106.29 apiece. However, this will still fetch HDFC Bank a sum of ₹161 crore, which is 7x its initial investment.

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Union Bank of India | Another state-run lender will be selling up to 5 lakh shares in the IPO, which it had acquired at an average cost of ₹5.2 per share. The sale will fetch Union Bank a sum of ₹40 crore, a return of 154x its initial investment.