CDSL IPO is open for subscription; here's what analysts say

A man looks at a screen displaying news of markets update inside the Bombay Stock Exchange building in Mumbai

However, in terms of market share, the company is the second largest depository in India.

The IPO, to raise Rs524 crore, received bids for 2,51,65,900 shares against the total issue size of 2,48,27,046 shares, data available with the NSE till 2.30pm showed. Investors can subscribe the IPO in lot of sizes of 100 shares.

The IPO, which opens on Wednesday (21 June), has a price band between Rs 167 and Rs 170 per equity share.

CDSL was established in 1997 by BSE, which holds a 50.05% equity stake in the depository unit.

Through this IPO, its existing promoter Bombay Stock Exchange (BSE) is selling 3.52 crore shares to public due to which its stake in CDSL will reduce to 24 per cent from 50.1 per cent now.

On Friday, the issue saw Abu Dhabi Investment Authority, FIL Investment (Mauritius), and top investment bank Goldman Sachs among the anchor investors participating in the IPO. However, there are risks as well, such as losses from an interruption in the IT systems or revenue loss from falling trading volumes.

The company has seen its revenues grow at a CAGR of 3.67% over the past four years with the revenue in FY2016 being Rs 139.4 crore. The entire proceeds from the OFS will be paid to the selling shareholders. For FY17, it reported a net profit of Rs. 87 crore on revenues of Rs. 146 crore. CDSL paid a dividend at the rate of 25% (Rs 2.5 per share) and this was up from 22% in FY2015.

Related:

Comments


Other news