Central Depository Services (CDSL), country's second largest depository promoted by BSE Limited, opened for subscription today with a price band of Rs 145-149 per share.
The company has seen good margin expansion and is a regulated company in terms of pricing.
Throwing more light on the trajectory for the company going forward PS Reddy, Managing Director & CEO of CDSL told CNBC-TV18 that they could continue to growth at the same rate as they have been in the past.
He said margins and profit after tax is expected to improve going ahead.
He said they are a rregulated industry and for every tariff change they have to go Sebi but that is not a constraint he said.
When asked about how they plan to make use of the excess cash of around Rs 548 crore, he said around Rs 250 crore of that is required to maintain the network, Rs 40-45 crore have been distributed at dividends, they have brought a new premises of around Rs 75 crore and that leaves about Rs 125- 150 crore. So not much cash is left.
He also shared the rationale for fall in return on equity.For the entire interview, watch video