Shares of Central Depository Services (India) Limited, or CSDL, the depository arm of BSE, are likely to get a spectacular listing after the Rs 524-crore issue closed with 169 times' oversubscription on June 21, the last day of the initial public offering (IPO).
Data available with stock exchanges as of 5.30 PM on June 21 showed that bids were received for almost 420 crore shares, setting the stage for a blockbuster debut on the stock exchanges.
Mumbai-based CDSL issued 3.52 crore shares in the price band of Rs 145 to 149 per equity share; 7 lakh shares were reserved for eligible employees and 1.03 crore shares for anchor investors from whom the company raised Rs 154 crore, leaving 2.48 crore shares for the public.
The IPO was an offer for sale by existing investors — up to 27,217,850 equity shares by BSE Limited; up to 4,775,000 equity shares by State Bank of India; up to 2,174,358 equity shares by Bank of Baroda and up to 1,000,000 equity shares by The Calcutta Stock Exchange.
The post-issue shareholding of promoters will stand at 24 percent from the current 50 percent.
Here are the highlights of CDSL and its IPO (according to Angel Broking, Centrum Broking):
CDSL has wide source of revenues, 35 percent from the annual issuer charges (which is recurring in nature) and 21 percent from transactions having some correlation with volumes in the markets. Another 13 percent comes from online data charges.
As the capital markets have remained buoyant, there has been an increasing trend of new listings, and thus, CDSL has generated 11 percent of its revenues from the IPO/ Corporate action charges. Hence, broadly speaking, the revenue base of CDSL is quite diversified.
CDSL has a market share of about 43 percent in demat accounts.
The number of demat accounts at CDSL has grown at a CAGR of 8.6 percent over FY2011-17 to 12.3 millionn, compared to 5.1 percent for (rival) NSDL over the same period, to 15.6 million.
The company earned a net profit of Rs 86 crore on operating income of Rs 146 crore in 2016-17 in comparison to Rs 91 crore net profit and Rs 123 crore in the preceding fiscal.
The company is debt-free cash rich (cash and investment of Rs 551 crore as on Mar'17). The company has healthy return ratios (FY17 - RoE 17.3 percent, RoCE 22.3 percent and RoIC 27.9 percent). Its stable business and steady revenue growth has allowed them to consistently pay dividends (last 3 years average 40 percent pay out).