Central Depository Services (India) Limited (CDSL)
Company & Business Profile
Central Depository Services (India) Limited (CDSL) is the leading securities depository in India by incremental growth of Beneficial Owner (“BO”) accounts over the last three fiscals and by the total number of registered Depository Participants (“DPs”), as at the end of fiscal 2016, according to the CRISIL report. However, in terms of market share, CDSL is the second largest depository in India. CDSL commenced their depository business in 1999 with the objective of providing convenient, dependable and secure depository services at affordable cost to all market participants. The Company initially promoted by the BSE which subsequently divested a part of its stake to leading Indian banks. They have connectivity with clearing corporations of all the leading Indian stock exchanges including the BSE, NSE and Metropolitan Stock Exchange of India. They have also entered into MoUs with depositories globally including with DTCC, JASDEC and Euroclear.
Objects of the Issue
- The objects of the offer are to achieve the benefits of listing the equity shares on NSE and for the sale of equity shares by the selling shareholders.
- Further, the company expects that listing of the equity shares will enhance its visibility and brand image and provide liquidity to its existing shareholders.
- The company will not receive any proceeds of the offer and all the proceeds of the offer will go to the selling shareholders in the proportion of the equity shares offered by them.
Valuation
- The issue has been offered in a price band of Rs 145-149 per equity share. At the upper price band of Rs 149 the stock is available at P/E of 18.14 (x) based on FY17 annualized EPS. We have “4 star” rating for the issue.
- We recommend subscribing to the issue.
Listing
The equity shares of the company is proposed to be listed on National Stock Exchange (NSE).
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