CDSL shares rallied a whopping 80 per cent on stock market debut.
Shares of Central Depository Services (India) Limited also known as CDSL made a blockbuster debut on the National Stock Exchange today by surging a whopping 80 per cent to hit intraday high of Rs 268, against its issue price of Rs 149. CDSL which is a depository arm of the Bombay Stock Exchange received an overwhelming response from investors and it was oversubscribed a staggering 170.16 times during June 19-21. The qualified institutional buyers (QIBs) portion was oversubscribed 148.71 times, while the non-institutional investors' section was subscribed 563.03 times and retail investors 23.83 times.
CDSL is one of the two depository services providers in India and is also the first depository in India to come out with an IPO. CDSL's price band in the initial public offer (IPO) was between Rs 145 and 149 and was opened for subscription between June 19 and 21.
CDSL IPO was purely an offer for sale and the company had not intended to raise any fresh capital through this issue. Through this IPO, its existing promoter Bombay Stock Exchange (BSE) sold 3.52 crore shares to public due to which BSE's stake in CDSL will reduce to 24 per cent from 50.1 per cent currently.
At the upper end of the price band, CDSL shares were valued at 18.2 times its FY17 earnings per share, which was a reasonable valuation, said Angel Broking in a note to its clients. CDSL reported net profit of Rs 87 crore on revenues of Rs 146 crore in FY17. During FY13-17, CDSL's revenue and net profit witnessed a CAGR of 10 per cent and 12 per cent respectively.
CDSL competes with National Securities Depository Limited (NSDL) which is the depository arm of the National Stock Exchange (NSE). Depository's business is to keep records of shares and securities owned by an individual or an entity.
As of 10:21 am, shares of CDSL traded 72 per cent higher at Rs 257 against its issue price of Rs 149 and 2.7 per cent higher against its opening price of Rs 250.
CDSL is one of the two depository services providers in India and is also the first depository in India to come out with an IPO. CDSL's price band in the initial public offer (IPO) was between Rs 145 and 149 and was opened for subscription between June 19 and 21.
CDSL IPO was purely an offer for sale and the company had not intended to raise any fresh capital through this issue. Through this IPO, its existing promoter Bombay Stock Exchange (BSE) sold 3.52 crore shares to public due to which BSE's stake in CDSL will reduce to 24 per cent from 50.1 per cent currently.
At the upper end of the price band, CDSL shares were valued at 18.2 times its FY17 earnings per share, which was a reasonable valuation, said Angel Broking in a note to its clients. CDSL reported net profit of Rs 87 crore on revenues of Rs 146 crore in FY17. During FY13-17, CDSL's revenue and net profit witnessed a CAGR of 10 per cent and 12 per cent respectively.
CDSL competes with National Securities Depository Limited (NSDL) which is the depository arm of the National Stock Exchange (NSE). Depository's business is to keep records of shares and securities owned by an individual or an entity.
As of 10:21 am, shares of CDSL traded 72 per cent higher at Rs 257 against its issue price of Rs 149 and 2.7 per cent higher against its opening price of Rs 250.
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