CDSL shares jump 75% on stock market debut, close at ₹260.70
MUMBAI: Shares of Central Depository Services (India) Ltd (CDSL) rose nearly 75% on their debut on Friday, logging the second-highest listing gains in nearly six years, after the company’s ₹524 crore initial public offering (IPO) received a robust subscription of more than 170 times when it closed earlier this month.
Before CDSL, Avenue Supermarts Ltd, which listed on the bourses on March 21, had seen a whopping 114.30% gains on the first day.
In September 2011, shares of PG Electroplast Ltd gained 96.02% on listing day.
CDSL shares opened 68% higher on the National Stock Exchange (NSE) at ₹250 a piece, compared to the issue price of ₹149, which was the upper end of the price band of ₹145-149 per share.
CDSL shares closed 74.97% higher at ₹260.70, while the exchange’s 50-share Nifty index closed up 0.18% at 9520.90 points. Earlier in the day, the shares touched a high of ₹269.95 and a low of ₹250.
“The (CDSL) stock was priced attractively, and hence it saw strong listing gains. At this point, it seems to be fairly priced,” said Rakesh Tarway, head of research at Reliance Securities Ltd.
“If an investor has a long-term perspective, this stock is capable of returning 12-14% return annually, due to increasing participation in the financial market,” added Tarway.
The IPO, which was a pure offer for sale, saw the company’s existing shareholders—stock exchange BSE India Ltd, the country’s top lender State Bank of India (SBI), Bank of Baroda and The Calcutta Stock Exchange—sell around 35.16 million shares.
BSE, which sold 27.2 million shares in the IPO, received ₹405.5 crore, while other sellers such as SBI, Bank of Baroda and The Calcutta Stock Exchange will make ₹71.1 crore, ₹32.3 crore and ₹14.9 crore, respectively.
Collectively, these selling shareholders own a 65.65% stake in CDSL. BSE, which owns a 50.05% stake in the company, will see its stake fall to 24% after the offering. SBI’s stake will drop to 5%.
CDSL serves customers such as depository participants, companies, capital market intermediaries and insurance companies.
BSE Ltd, which was listed on 2 February, is up 33.19% from its issue price. It was the first stock exchange to get listed in India.