BSE’s Depository Arm CDSL Raises Rs 154 Crore From Anchor Investors
CDSL allotted 1.03 crore shares to anchor investors at the upper end of the price band.
BSE Ltd.’s subsidiary Central Depository Services (India) Ltd. allocated shares worth Rs 154.07 crore to 15 anchor investors ahead of its initial public offering (IPO) on June 19. The country's only listed equity exchange is going public with its subsidiary less than four months after its own primary market debut, to meet regulatory requirements.
CDSL has allotted 1.03 crore shares at the upper end of the price band of Rs 149 a piece, it said in a stock exchange filing on Friday. The price band for the IPO has been fixed at Rs 145-149 per share.
FIL Investments took the biggest piece of the pie with almost 13 percent of the anchor allotment. Other sizable investors included ICICI Prudential, HDFC Standard Life, IDFC and HSBC.
CDSL is looking to raise around Rs 525 crore and will see BSE dilute a little over 26 percent stake in its subsidiary. BSE wants to offload shares to meet the listing norms of Securities Exchange Board of India which does not allow a stock exchange to hold over 24 percent in a depository. State Bank of India, Bank of Baroda and the Calcutta Stock Exchange, are the other CDSL shareholders which would be offloading shares through the IPO.
The IPO values the company at Rs 1,500 crore, CDSL's managing director and chief executive officer PS Reddy had said in an interview to BloombergQuint.
CDSL which has also been shortlisted as one of the 34 GST Suvidha Providers in the country, is looking to leverage its network to build its GST-related business, to help small and medium enterprises, said Reddy.
Brokerage Angel Broking has said CDSL's business model, which has high entry barriers for new players, makes it unique along with decent growth prospects. It has a subscribe rating on the issue, according to its note.