CDSL is one of the two depository services providers in India and is also the first depository in India to come out with an IPO. CDSL's price band in the initial public offer (IPO) was between Rs 145 and 149 and was opened for subscription between June 19 and 21.
CDSL IPO was purely an offer for sale and the company had not intended to raise any fresh capital through this issue. Through this IPO, its existing promoter Bombay Stock Exchange (BSE) sold 3.52 crore shares to public due to which BSE's stake in CDSL will reduce to 24 per cent from 50.1 per cent currently.
At the upper end of the price band, CDSL shares were valued at 18.2 times its FY17 earnings per share, which was a reasonable valuation, said Angel Broking in a note to its clients. CDSL reported net profit of Rs 87 crore on revenues of Rs 146 crore in FY17. During FY13-17, CDSL's revenue and net profit witnessed a CAGR of 10 per cent and 12 per cent respectively.
As of 10:21 am, shares of CDSL traded 72 per cent higher at Rs 257 against its issue price of Rs 149 and 2.7 per cent higher against its opening price of Rs 250.