It is indeed a pleasure to present before you the 20th Annual Report of your Companyand the first one following our successful Initial Public Offering (IPO) in June 2017.Since inception CDSL has come a long way and has become a force to reckon with in thecapital market. The IPO marks an important milestone for us and I place on record mygratitude to all the investors who came forward and reposed their trust in us.
It is an overwhelming experience to witness such an outstanding response from everyinvestor category. The retail quota got oversubscribed by nearly 24x the qualifiedinstitutional buyer (QIB) by 148x and the non-institutional investor segment by 563x.Overall the issue was oversubscribed by 170x making it the most subscribed maiden issuein over a decade in Dalal Street and the fourth largest offering ever in terms ofoversubscription.
FY 2017-18 has been a positive year for the country's capital markets. The marketsremained buoyant and indices neared an all-time high. This contributed to a strong growthin our volumes by 74.22% as we added 25.73 lakh accounts. Our financial performance hasbeen encouraging as we posted a net profit of ' 77.69 crore as compared to ' 67.85 crorein FY 2016-17. Driven by the strong performance the Board has recommended a dividend of '3.50 per share highest-ever in CDSL's history.
The year also saw us adequately leveraging our platform and technology competence as wereached out to more companies to enable their shareholders cast vote electronically. Thisfacility has seen significant traction. As on March 31 2018 our e-Voting system recorded16500 instances of voting with 5037 companies signing agreements.
Coming to our subsidiaries both CDSL Ventures Ltd. (CVL) and CDSL Commodity RepositoryLimited (CCRL) have shown steady performance.
During the year CVL got the mandate from the Ministry of Human Resources Department(MHRD) / University Grants Commission (UGC) to offer National Academic Depository (NAD)services an initiative of Government of India. Already 311 universities have signedagreements to host their transcript data on NAD and we expect more to materialise as theconcept gets popularised with university officials.
CCRL engaged in Commodity Repository is our latest venture that got operationalisedin September 2017. It facilitates farmers farmers producer organisations (FPOs)manufacturers etc. to obtain electronic warehouse receipts (negotiable or nonnegotiable)in a demat account against commodities deposited in warehouse regulated by WarehousingDevelopment and Regulatory Authority. The depositor thereafter can sell the same or pledgethe commodity for finance. Within a short span nearly 87 entities have joined CCRL asRepository Participants which is an encouraging sign.
I have strong reasons to believe the market will continue to sustain its growthmomentum going into FY 2018-19. The sentiments on domestic economic activity after aperiod of lull is reviving as evident in firming industrial activity and exports. Thereare clear signs of revival in investment activity as reflected in the sustained expansionin capital goods production and rising imports although at a slower pace than in FY2017-18. Further with economic activity for most major countries globally recovering theglobal demand is witnessing an upsurge. This should eventually encourage exports and boostfresh investment.
Led by these developments the RBI is positive on the Indian economy. It expects thecountry's GDP growth to strengthen from 6.6% in FY 2017-18 to 7.4% in FY 2018-19. I amsure your Company will be on the right side of the opportunity and stand benefited.
I take this opportunity to thank all the stakeholders including the Members of theBoard for their valuable guidance support and prudent counsel the SEBI and stockexchanges and the Auditors and Legal Advisers for their valuable support andcontribution. I also thank the Ministry of Finance.
I place on record our sincere thanks to all shareholders for the sustained confidencereposed in us. And finally I thank all the employees for their dedication andcontribution to ensure CDSL's growth and success. Together we shall continue to make CDSLbigger and better.
T. S. Krishna Murthy
Chairman & Public-Interest Director