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CDSL extends rally; stock zooms 131% against IPO price

The stock hit high of Rs 344, zoomed 131% against initial public offer price of Rs 149 per share.

SI Reporter  |  Mumbai 

Can CDSL provide a push to BSE's valuations?

Central Depository Services (CDSL) rallied 17% to Rs 344, extending its Thursday’s 11% surge on the National Stock Exchange (NSE) on back of heavy volumes.

was trading at its highest level since listing on June 30, 2017, zoomed 131% against its initial public offer (IPO) price of Rs 149 per share. The company, the first depository listed on the country’s stock exchanges, had made stellar debut ended 75% higher to its issue price on debut day.

The Rs 525-crore of saw a whopping 170 times more demand than shares on offer. shares are listed only on the NSE but not on Bombay Stock Exchange (BSE) as it is the promoter of with 24%.

Most of the local brokerage houses were upbeat on the and recommended ‘subscribe’ given its strong fundamentals and clean balance sheet.

operates in a duopoly and its business has entry barriers in terms of regulatory restrictions, capitalization norms and long gestation periods. It is also gaining ground against its only competitor NSDL by continuously gaining market share (from 46% in FY12 to 60% in FY17) in terms of incremental demat accounts opened annually. Off late, increased public interest in trading and investing in stock augur well for the company. Also, under penetration in stock market (2-3%) provides significant opportunity to CDSL,” analyst at India Infoline said in note.

At 01:23 pm; the stock was trading 16% higher at Rs 340 on NSE, as compared to 0.16% decline in the Nifty 50 index. Around 29.92 million equity shares of have changed hands on the counter so far.

First Published: Fri, July 07 2017. 13:33 IST