CDSL IPO oversubscribed 2 times on Day 1

  • CDSL IPO oversubscribed 2 times on Day 1

CDSL IPO oversubscribed 2 times on Day 1

Managing Director of GTPL Hathway A Jadeja said that 1.4 crore equity shares would be offloaded as "Offer for Sale" to raise Rs 240 crore and another Rs 240 crore by way of offering fresh equity. Listing of shares of CDSL will only be on the National Stock Exchange (NSE) and not on the BSE as the latter is the promoter of the depository.

The category reserved for qualified institutional buyers (QIBs) was subscribed 97 per cent and non institutional investors, 61 per cent.

CDSL is the second largest depository in terms of market share and has been growing at decent CAGR of 23% and 14% in 3 to 5 years. In addition to BSE, SBI and Bank of Baroda will also reduce their shareholding while Calcutta Stock Exchange will sell all the 1,000,000 shares it owns.

Retail investors portion was oversubscribed 3.48 times.

The IPO is going to follow book building issue, wherein price band is fixed at Rs 145 per share to Rs 149 per share. However, the scenario is changing gradually and this is a big positive for players like CDSL. For FY17, it reported a net profit of Rs. 87 crore on revenues of Rs. 146 crore. CDSL works in a different business model. The company's margins have been are solid and have never dipped below 34% in the last four years. CDSL paid a dividend at the rate of 25% (Rs 2.5 per share) and this was up from 22% in FY2015.