The initial public offer of Central Depository Services (India) got a massive response with the issue being subscribed 169.4 times. While the institutional portion got subscribed 148.7 times, the portion set aside for high networth individuals got subscribed by 563 times. The retail portion got lapped up by 22.3 times.
Plans ₹493-507-cr mop-upRecently, the initial public offer of D-Mart parent Avenue Supermarts, to raise ₹1,870 crore, was subscribed a staggering 104.48 times at the end of the three-day bidding.
CDSL plans to raise ₹493-507 crore by offering a net 3.4 crore shares to the public in the price band of ₹145-149. All the proceeds of the offer will go to the selling shareholders namely BSE, SBI, The Calcutta Stock Exchange and Bank of Baroda.
BSE’s stake will fall to 24 per cent, from the current 50 per cent stake.
CDSL was formed in 1999 and is the second Indian central securities depository based in Mumbai. This is the first depository to get listed on the stock exchange.
CDSL has wide source of revenues, including from the annual issuer charges and from online data charges. Since there has been an increasing number of new public offers, CDSL also gets revenues from the IPO charges.
“CDSL has stable operating income from the fixed annual charges collected from companies registered with CDSL and transaction-based fees collected from DPs. It has had robust revenue and profitability growth in the last three years,” ICICI Securities said in a report.