India's first custodian plans IPO

Stock Holding Corp, largest domestically held custodian, wants a single banker to manage the mandate, not a consortium

India’s biggest custodian, Stock Holding Corporation of India (SHCI), has set in motion a plans to go public.

Owned by financial institutions led by IFCI, it has sought applications from investment bankers to advise it on listing.

Bids have been invited bids in two phases, one to advise on listing and the next phase to be lead manager of the public offer.  

The banker chosen at the first stage would need to advise the company on dilution of stake and get necessary approvals from the Securities and Exchange Board of India (Sebi).

The plan marks the first listing in the space of market infrastructure institutes. The Sebi regulations of 1996 for custodians do not specify any particular criteria for listing.  

“Examine and identify the promoter(s) of the company, finalise promoter group in terms of the Sebi (ICDR) regulations. Examine compliance with promoter contribution norms' and examine the disclosures required to be made by subsidiary and group companies,” stated the Request For Proposal floated by SHCI.

The banker chosen at the next stage would be responsible for road shows.  

The organisation has the biggest share among domestic custodians. Others prominent in the space are SBI Share Holding Corporation, UTI Infrastructure Technology and Services, Canbank Computer Services and India Clearing & Depository Services. There are 12 domestic entities in the space. Foreign custodians manage money of foreign portfolio investors.   

Stock Holding was incorporated in 1986 and is a subsidiary of IFCI. Other shareholders include Life Insurance Corporation and General Insurance Corporation.