CDSL files preliminary papers for IPO

Leading securities depository CDSL, promoted by BSE, today filed the draft papers for an initial public offer through which it plans to sell more than 3.5 crore shares.
Four shareholders -- BSE, SBI, Bank of Baroda and the Calcutta Stock Exchange -- would be selling stakes in Central Depository Services (India) Ltd (CDSL) through the IPO.
Little over 3.5 crore shares would be offloaded through the Offer for Sale (OFS) route and out of the total, 7 lakh shares would be reserved for the employees, as per the Draft Red Herring Prospectus (DRHP).
Net offer would constitute 32.98 per cent of CDSL's post offer paid up equity share capital.

BSE, which holds 50.05 per cent stake in the entity, is itself preparing to come out with an initial share sale.
Other major shareholders in the company are State Bank of India, HDFC Bank, Standard Chartered Bank, Canara Bank, Bank of India, Bank of Baroda, Life Insurance Corp, Union Bank of India and Bank of Maharashtra.

CDSL's revenue from operations include transaction, account maintenance charges and settlement charges paid by depository participants. Besides, there are annual fees, corporate action charges and e-voting charges paid by companies concerned.
In financial year 2016, the company had a net profit after tax of Rs 74.14 crore. It began its depository business in 1999.

"The net worth of our company as of September 30, 2016, on the basis of the Restated Consolidated Financial Information and the Restated Unconsolidated Financial Information was Rs 4,511.05 million and Rs 3,971.94 million, respectively," the DRHP said.
Axis Capital, Edelweiss Financial Services, Nomura Financial Advisory and Securities (India) and SBI Capital Markets are the global co-ordinators and book running lead managers for the offer.