Promoter BSE to offer 26% stake to comply with Sebi requirements

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Central Depository Services India (CDSL) will launch its much-awaited initial public offering (IPO) on June 19. Promoter BSE will sell 26 per cent stake in the depository via the IPO to comply with the shareholding requirement imposed by markets regulator Securities and Exchange Board of India (Sebi).

The exchange currently holds 50.05 per cent stake in CDSL. To meet Sebi norms, it had to bring down its holding to 24 per cent by March 31, 2017. Sebi, however, has extended the deadline till June 30. CDSL’s Rs 524-crore IPO will close on June 21 and the listing will take place before June 30.

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The IPO entirely comprises of secondary share sale of 35.2 million shares which are being offered in the price band of Rs 145-149 per share. Besides the BSE, State Bank of India, Bank of Baroda and Calcutta Stock Exchange will be offering their 4.57 per cent, 2.08 per cent and 0.96 per cent stake, respectively, in the IPO.

The offering will comprise of 33.65 per cent of paid-up equity share capital of CDSL. At the top-end of the price band, CDSL will be valued at around Rs 1,550 crore. After BSE, CDSL is the second market infrastructure institution (MII) to go public. Just like the BSE, CDSL, too, will be listed only on the National Stock Exchange (NSE).

For the year FY17, CDSL had reported net profit of Rs 85.8 crore on revenues of Rs 1,86.9 crore. (read more…)

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