Sunil Shankar Matkar
Central Depository Services (CDSL) shares debuted with 68 percent gains on the National Stock Exchange Friday. The share price opened at Rs 250 against the issue price of Rs 149.
The bumper listing was on expected lines as the issue has received overwhelming response, oversubscribing 170 times. The grey market premium also indicated the strong listing.
At 10:04 am, the stock price was trading at Rs 264.80, up 77.7 percent, with volume of 1.5 crore shares after hitting a high of Rs 268 in morning trade.
It is the second blockbuster listing in 2017. Avenue Supermarts, the owner of retail chain D-Mart, shot up more than 100 percent on listing day while BSE Limited (the promoter of CDSL), Music Broadcast and HUDCO debuted with 22-35 percent gains.
CDSL shares are listed only on the National Stock Exchange but not on Bombay Stock Exchange (BSE) as it is the promoter of CDSL with 24 percent stake.
The BSE Limited reduced its stake in the securities depository by 26 percent from 50 percent, which is in line with SEBI's ownership rules.
The Rs 524-crore initial public offering of CDSL, the first by a securities depository firm in India, was opened for subscription during June 19-21.
It was an offer for sale issue of 3.51 crore shares (representing 33.65 percent of fully diluted post-offer paid-up equity) by selling shareholders BSE Limited, State Bank of India, Bank of Baroda and Calcutta Stock Exchange. Hence, the company did not receive any proceeds of the offer.
Incorporated in December 1997, CDSL is a leading securities depository in India by incremental growth of beneficial owner accounts over the last three fiscals and by the total number of registered depository participants, as at the end of fiscal 2016.Watch accompanying video of CNBC-TV18's Kevin Lee in conversation with PS Reddy, MD & CEO of CDSL to know how they are going to use the funds.