 "CDSL makes stellar debut; ends 75% higher against issue price")
Central Depository Services (India) Limited (CDSL) made a strong debut by listing at Rs 250, a 68% premium against its initial public offer (IPO) price of Rs 149 on the National Stock Exchange (NSE). CDSL is the first depository to be listed on the country’s stock exchanges.
The stock ended at Rs 260.70, up 4.3% against its listing price, and nearly 75% against its issue price.
The Rs 525-crore IPO of CDSL saw a whopping 170 times more demand than shares on offer. The issue generated demand worth nearly Rs 63,000 crore. The issue was one of the most oversubscribed in recent times.
The institutional investor portion of the IPO was subscribed 149 times, high net worth individual (HNI) portion was subscribed 563 times and the retail portion was subscribed 24 times.
CDSL is one of the two depositories operating in India, which facilitate the holding of securities in electronic form and enable securities to be processed by book entry. It was originally promoted by BSE, which subsequently divested part of its stake to leading banks as its sponsors.
Most of the local brokerage houses were upbeat on the CDSL IPO and recommended ‘subscribe’ given its strong fundamentals and clean balance sheet.
“CDSL has a unique business model with high entry barriers coupled with decent growth prospects. The average ROE for the last six years has been around 17%, which we believe will sustain going ahead as well. The incremental capital required for doing business in this space is very minimal and this makes it an interesting business model,” Angel Broking said in IPO note.
“CDSL 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 markets augur well for the company. Also, under penetration in stock market (2-3%) provides significant opportunity to CDSL,” analyst at India Infoline said in IPO note.
The stock ended at Rs 260.70, up 4.3% against its listing price, and nearly 75% against its issue price.
The Rs 525-crore IPO of CDSL saw a whopping 170 times more demand than shares on offer. The issue generated demand worth nearly Rs 63,000 crore. The issue was one of the most oversubscribed in recent times.
The institutional investor portion of the IPO was subscribed 149 times, high net worth individual (HNI) portion was subscribed 563 times and the retail portion was subscribed 24 times.
CDSL is one of the two depositories operating in India, which facilitate the holding of securities in electronic form and enable securities to be processed by book entry. It was originally promoted by BSE, which subsequently divested part of its stake to leading banks as its sponsors.
Most of the local brokerage houses were upbeat on the CDSL IPO and recommended ‘subscribe’ given its strong fundamentals and clean balance sheet.
“CDSL has a unique business model with high entry barriers coupled with decent growth prospects. The average ROE for the last six years has been around 17%, which we believe will sustain going ahead as well. The incremental capital required for doing business in this space is very minimal and this makes it an interesting business model,” Angel Broking said in IPO note.
“CDSL 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 markets augur well for the company. Also, under penetration in stock market (2-3%) provides significant opportunity to CDSL,” analyst at India Infoline said in IPO note.
| Listing | Price in Rs | Issue Size | Subscription | |||||
| Short Name | Date | Issue | Listing | % chg* | LTP | % chg* | Rs crore | Times |
| Avenue Supermarts | 21/03/2017 | 299.00 | 640.75 | 114.3 | 809.70 | 170.8 | 1870 | 73.41 |
| CDSL | 30/06/2017 | 149 | 260 | 74.5 | 258.3 | 73.4 | 525.00 | 170 |
| Quess Corp | 12/07/2016 | 317.00 | 503.00 | 58.7 | 901.95 | 184.5 | 400 | 81.50 |
| Thyrocare Technologies | 09/05/2016 | 446.00 | 618.10 | 38.6 | 720.05 | 61.4 | 479 | 52.33 |
| Shankara Building Prod | 05/04/2017 | 460.00 | 632.80 | 37.6 | 822.05 | 78.7 | 345 | 28.97 |
| Endurance Technologies | 19/10/2016 | 472.00 | 647.70 | 37.2 | 880.00 | 86.4 | 1162 | 30.92 |
| RBL Bank | 31/08/2016 | 225.00 | 299.30 | 33.0 | 499.80 | 122.1 | 1213 | 48.99 |
| BSE | 03/02/2017 | 806.00 | 1069.20 | 32.7 | 1101.00 | 36.6 | 1243 | 36.11 |
| Advanced Enzyme Tech | 01/08/2016 | 179.20 | 235.66 | 31.5 | 322.15 | 79.8 | 412 | 81.63 |
| Mahanagar Gas | 01/07/2016 | 421.00 | 519.90 | 23.5 | 974.00 | 131.4 | 1040 | 45.49 |
| Equitas Holdings | 21/04/2016 | 110.00 | 135.25 | 23.0 | 149.75 | 36.1 | 2177 | 12.17 |
| HUDCO | 19/05/2017 | 60.00 | 72.50 | 20.8 | 67.10 | 11.8 | 1224 | 79.31 |
| TeamLease Services | 12/02/2016 | 850.00 | 1021.95 | 20.2 | 1338.30 | 57.4 | 424 | 38.75 |
| GNA Axles | 26/09/2016 | 207.00 | 245.15 | 18.4 | 230.00 | 11.1 | 130 | 38.15 |
| Dilip Buildcon | 11/08/2016 | 219.00 | 251.95 | 15.0 | 440.05 | 100.9 | 654 | 15.29 |
| PNB Housing Finance | 07/11/2016 | 775.00 | 890.60 | 14.9 | 1558.95 | 101.2 | 3001 | 20.41 |
| Music Broadcast | 17/03/2017 | 333.00 | 373.15 | 12.1 | 350.00 | 5.1 | 489 | 39.94 |
| Ujjivan Financial Services | 10/05/2016 | 210.00 | 231.60 | 10.3 | 302.90 | 44.2 | 882 | 28.79 |
| S Chand & Company | 09/05/2017 | 670.00 | 675.85 | 0.9 | 469.70 | -29.9 | 729 | 42.23 |
| LTP : Last traded price in Rs on NSE at 10:14 am | ||||||||
| *% change over IPO Price | ||||||||
| Peformance of IPO's that subscribed over 10 times against issue size | ||||||||
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