CDSL IPO oversubscribed 7.5 times on robust response from retailers

NEW DELHI: The initial public offering (IPO) of Central Depository Services (CDSL) was oversubscribed 7.5 times on the second day of the bidding process on Tuesday till 5.30 pm (IST). The ongoing public offer is getting robust response from retail investors.

The company has plans to raise around Rs 524 crore through the public offer. The issue has received bids for 18,75,67,500 shares against the total issue size of 2.48 crore shares, as per the data available with stock exchanges.

The category reserved for qualified institutional buyers (QIBs) was subscribed 97 per cent on Monday and non institutional investors (61 per cent). Retail investors quota was oversubscribed 3.48 times.

The price band for the share sale has been fixed at Rs 145-149 and the issue will close on June 21.

CDSL on Friday raised Rs 154.07 crore from 15 anchor investors.

According to Sharekhan, CDSL is offering equity shares at a valuation of 18.1x FY2017 consolidated diluted EPS at the upper end of the price band of Rs 145 and Rs 149 per share. The company has a double-digit return on equity and a steady growth track record. It is a good play on equity markets and the structural growth story of shift of household investment to financial assets from physical assets in the country.

Central Depository Services Ltd (CDSL) is one of the two depositories operating in India, which facilitate the holding of securities in electronic form and enable securities to be processed by book entry. It was originally promoted by BSE, which subsequently divested part of its stake to leading banks as its sponsors.

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Source:Economic Times

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