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CDSL's Rs 524-cr IPO a massive hit; gets oversubscribed 169 times

Consolidated sales were up 19% to Rs 146 crore and operating profit margins increased to 54.4%

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Can CDSL provide a push to BSE's valuations?

The initial public offer (IPO) of Central Depository Services (India) (CDSL) received bids for 419.66 crore shares on the third and final day of bidding, as per the data showed on NSE as at 17:00 IST. The IPO was subscribed 169.04 times. The IPO, to raise Rs 524 crore, opened for bidding on 19 June 2017 and closes today, 21 June 2017.

CDSL has raised Rs 154.06 crore from anchor investors by selling 1.03 crore shares. The shares were allotted to the anchor investors at Rs 149 per share, the top end of the Rs 145 to Rs 149 per share price band for the initial public offering (IPO).

Promoter subsequently divested a part of its stake to leading Indian banks. Currently, holds 52,297,850 equity shares aggregating to 50.05% of the subscribed and paid-up equity share capital. Listing of shares of CDSL will only be on the National Stock Exchange (NSE) and not on the as the latter is the promoter of the depository.Anchor investors included FIL Investments (Mauritius), ICICI Prudential Dividend Yield Equity Fund, HDFC Standard Life Insurance Co., IDFC Equity Fund, DSP BlackRock, SBI Mutual Fund, Tata Mutual Fund, HSBC Indian Equity Mother Fund, Axis Mutual Fund, IIFL Special Opportunities Fund, Abu Dhabi Investment Authority, and Goldman Sachs India among others.

The issue comprises offer for sale (OFS) of up to 35,167,208 equity shares by the promoters and sponsors. The entire proceeds from the OFS will be paid to the selling shareholders. The OFS includes sale of equity share of up to 27,217,850 equity shares by the promoter of the company up to 47,75,000 equity shares by the State Bank of India, up to 21,74,358 equity shares by Bank of Baroda and up to 10 lakh equity shares by the

The OFS will mop up proceeds of Rs 509.92 crore at the lower price band of Rs 145 per share (face value Rs 10 per share) and Rs 523.99 crore at the upper band of Rs 149 per share. Post-IPO, the promoter's stake will reduce to 24% from 50.05%.

Consolidated sales were up 19% to Rs 146 crore and the operating profit margins increased from 52% to 54.4%, resulting in a 24% spurt in operating profit to Rs 79.42 crore in FY 2017. After providing total tax of Rs 29.98 crore, consolidated profit after tax stood at Rs 86.59 crore.

CDSL is the leading securities depository in India by incremental growth of beneficial owner (BO) accounts. However, in terms of market share, the company is the second largest depository in India. The depository commenced in 1999 to provide convenient, dependable and secure depository services at affordable cost to all market participants.

First Published: Wed, June 21 2017. 19:59 IST