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CDSL IPO subscribed over 170 times

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Capital Market
Last Updated : Jun 23 2017 | 12:01 AM IST

Receives bids for 422.45 crore shares

The initial public offer (IPO) of Central Depository Services (India) (CDSL) received bids for 422.45 crore shares, NSE data showed. The IPO was subscribed 170.16 times. The IPO opened for bidding on 19 June 2017 and closed yesterday, 21 June 2017.

Category wise, the qualified institutional buyers (QIBs) category was subscribed 148.71 times. The non institutional investors (NIIs) category was subscribed 563.03 times. The retail individual investors (RIIs) category was subscribed 23.83 times.

Ahead of the opening of the IPO, CDSL had raised Rs 154.06 crore from anchor investors by selling 1.03 crore shares. The shares were allotted to the anchor investors at Rs 149 per share, the top end of the Rs 145 to Rs 149 per share price band for the initial public offering (IPO).

Anchor investors included FIL Investments (Mauritius), ICICI Prudential Dividend Yield Equity Fund, HDFC Standard Life Insurance Co., IDFC Equity Fund, DSP BlackRock, SBI Mutual Fund, Tata Mutual Fund, HSBC Indian Equity Mother Fund, Axis Mutual Fund, IIFL Special Opportunities Fund, Abu Dhabi Investment Authority, and Goldman Sachs India among others.

Promoter BSE subsequently divested a part of its stake to leading Indian banks. Currently, BSE holds 52,297,850 equity shares aggregating to 50.05% of the subscribed and paid-up equity share capital. Post-IPO, the promoter's stake will reduce to 24% from 50.05%. 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 issue comprised an offer for sale (OFS) of up to 3.51 crore equity shares by the promoters and sponsors. The entire proceeds from the OFS will be paid to the selling shareholders. The OFS includes sale of equity share of up to 2.72 crore equity shares by the promoter of the company up to 47.75 lakh equity shares by the State Bank of India, up to 21.74 lakh equity shares by Bank of Baroda and up to 10 lakh equity shares by the Calcutta Stock Exchange.

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Consolidated sales were up 19% to Rs 146 crore and the operating profit margins increased from 52% to 54.4%, resulting in a 24% spurt in operating profit to Rs 79.42 crore in FY 2017. After providing total tax of Rs 29.98 crore, consolidated profit after tax stood at Rs 86.59 crore.

CDSL is the leading securities depository in India by incremental growth of beneficial owner (BO) accounts. However, in terms of market share, the company is the second largest depository in India. The depository commenced in 1999 to provide convenient, dependable and secure depository services at affordable cost to all market participants.

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First Published: Jun 22 2017 | 2:02 PM IST

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