Central Depository Services Ltd (CDSL) is one of two depository services providers in India. CDSL is offering its shares to the public for an initial public offer (IPO) today. First time a depository in India is to come out with an IPO. The IPO will be open for 3 days. The IPO will priced in a band of Rs 145-149. Investors can subscribe the IPO in lot of sizes of 100 shares.
Things to know about CDSL IPO.
- CDSL IPO is purely an offer for sale and the company does not intend to raise any fresh capital through this issue.
- 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 currently.
- CDSL facilitates holding of securities in electronic form and enables security transactions, off market transfer and pledge through book entry
- CDSL offers other online services such as e-voting, e-locker etc
- As of April 30, 2017, CDSL had 589 Depository Participants (DP) and 12.4 million investor accounts. CDSL has a market share of 43 per cent in cumulative demat accounts.
- Leading stock exchange BSE, which holds 50.05 per cent stake in CDSL, will offload 2.72 crore shares representing 26.05 per cent holding in the depository to meet with Sebi norms.
- Under the regulations, a stock exchange cannot have more than 24 per cent in a depository.
- State Bank of India (SBI), Bank of Baroda, The Calcutta Stock Exchange, are other CDSL shareholders which will offload shares through the IPO.
- CDSL on Friday raised a little over Rs 154 crore from anchor investors.
- CDSL has a diversified source of revenue with 35 per cent coming from annual issuer charges (recurring in nature), 21 per cent from transactions (which is correlated to market and is volatile in nature) and 13 per cent from online data charges. For FY17, it reported a net profit of Rs. 87 crore on revenues of Rs. 146 crore. During FY13-17, CDSL’s revenue and net profit have witnessed a CAGR of 10 per cent and 12 per cent respectively.