CSDL shares enjoy stellar debut, open 80% over issue price at Rs 250

The Initial Public Offering (IPO) of CSDL was purely an offer for sale.

Mumbai, June 30: Shares of Central Depository Services Ltd (CSDL) opened way above the issue price on the National Stock Exchange. the shares were sold at Rs 250 apiece, which is over 80 per cent of its issue price of Rs 149 each.

Further, CSDL shares managed to touch an intraday high of Rs 268. The bumper listing followed expectations as the stock was oversubscribed by over 170.16 times between June 19 to June 21, 2017. Meanwhile, the benchmark Nifty index traded 0.44 per cent lower at 30,720.42 points.

The Initial Public Offering (IPO) was purely an offer for sale. Its existing shareholders that include, the Bombay Stock Exchange, State Bank of India Ltd, Bank of Baroda Ltd and The Calcutta Stock Exchange, did not intend to raise fresh capital via the issue.

CSDL, which acts as a depository arm of the Bombay Stock Exchange, is the only depository service in India that has launched an IPO. After the IPO, the Bombay Stock Exchange has reduced its shareholding in the CSDL to 26 percent from its initial 50 percent. This is in line with the guidelines of the Securities and Exchange Board of India.

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The other such service, National Securities Depository Ltd, is, however, much older and has the backing of institutions such as IDBI Bank, UTI and NSE among others. However, being the depository arm of the BSE, the CSDL could only be listed on the National Stock Exchange and not on the Bombay Stock Exchange.

While the performance of CDSL shares comes as no surprise, the amount of oversubscription is significant. Retail investors oversubscribed by 23.83 times, while the qualified institutional buyers (QIBs) and the non-institutional investors’ section were oversubscribed by 148.71 times and 563.03 times respectively.

The Rs 524-crore Initial public Offering was for a sale issue of 3.51 crore shares of the Central Depository Services Ltd. Launched much later than the NSDL in 1997, the CSDL assists shareholders in managing their investor profiles electronically.