Stellar performance on debut: CDSL soars 75% to close at Rs 261.60
CDSL touched an intraday high of Rs 269.95 (up 81.17 percent) but did not fall below its pre-opening price of Rs 250.
Sunil Shankar Matkar
It was a stellar debut by Central Depository Services (CDSL), the country's second largest securities depository, which gained 75 percent on Friday and was the second stock that provided hefty returns to investors on listing day in 2017.
The stock closed at Rs 261.60 on the National Stock Exchange, up 75.57 percent over issue price of Rs 149 and traded with volumes of 5.03 crore shares, which were much higher than its issue size of 3.51 crore shares.
It touched an intraday high of Rs 269.95 (up 81.17 percent) but did not fall below its pre-opening price of Rs 250.
The bumper listing was in line, given the overwhelming response to the issue that was oversubscribed 170 times. It was a first IPO by a securities depository in India.
The Rs 524-crore initial public offering of CDSL, which was opened for subscription during June 19-21, 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.
Its promoter BSE Limited's shareholding reduced to 24 percent (from 50 percent) after the issue, which is as per SEBI's ownership rules.
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.
CDSL, which incorporated in December 1997, 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.In 2017, Avenue Supermarts, the owner of retail chain D-Mart, had more than 100 percent rally on debut while BSE Limited (the promoter of CDSL), Music Broadcast and HUDCO listed with 22-35 percent gains.