CDSL IPO fully subscribed on Day 1

Ivan Schwartz
June 19, 2017

Aiming to tap the upbeat investor sentiment, two companies - CDSL on Monday launched its Initial Public Offer (IPOs) to raise over Rs 1,000 crore. Just like BSE was the first stock exchange to list in India, CDSL will be the first depository to be quoted on an Indian stock exchange.

Up to 7,00,000 shares are reserved for employees.

According to Motilal Oswal Securities Ltd, at Rs 149 a share, the offer is valued at 18.2 times FY17 earnings per share (EPS), which is attractive due to its strong parentage, stable earnings growth, strong margins and decent return on equity of 17% in FY17.

CDSL raised Rs 154.06 crore ($24 million) from the anchor investors by selling 10.34 million shares at Rs 149 apiece, the upper end of the Rs 145-149 price band.

Things to know about CDSL IPO.

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The bidding in BSE-promoted CDSL's IPO will begin on June 19 and close on June 21, while that of GTPL Hathway, part of Hathway Cable and Datacom Ltd, will be open for public subscription from June 21-23.

The issue is an offer for sale up to 3,51,67,208 equity shares. CDSL has a market share of 43 per cent in cumulative demat accounts.

Under the regulations, a stock exchange can not have more than 24 per cent in a depository.

On Friday, the issue saw Abu Dhabi Investment Authority, FIL Investment (Mauritius), and top investment bank Goldman Sachs among the anchor investors participating in the IPO. Listing of shares of CDSL will only be on the National Stock Exchange (NSE) and not on the BSE as the latter is the promoter of the depository.

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