CDSL Most Subscribed IPO Of 2017
CDSL’s IPO has received bids for 122.76 crore shares compared to the 2.4 crore shares put on offer.
Overwhelming Response
- High net-worth individuals: 563 times
- Qualified institutional bidders: 148.7 times
- Retail investors: 23 times
- Overall: 170 times
The initial public offering of BSE Ltd.’s depository arm, the Central Depository Services (India) Ltd., became the most subscribed issue of 2017 in Indian capital markets after it received strong demand from on the final day of bidding.
Buyers bid for 169.75 times the shares on offer until 7:00 p.m. on Wednesday, according to data available with the stock exchanges. The IPO received bids for 421 crore shares compared to the 2.4 crore shares CDSL put on offer.
Demand was led by high net-worth individuals who bid for 563 times the shares on offer for them. Qualified institutional bidders bid for 148.7 times the shares on offer for that category, while the retail category was subscribed almost 23 times.
The IPO, for which bidding closed at 9:00 pm has attracted subscription worth Rs 64,000 crore approximately, according to the company.
The IPO, a pure offer for sale, saw the company’s existing shareholders – stock exchange BSE India Ltd, the country’s largest lender State Bank of India Ltd (SBI), Bank of Baroda Ltd and The Calcutta Stock Exchange – sell around 3.5 crore shares.
At the upper end of the price band of Rs 145-149, the share sale will fetch these shareholders a total of Rs 524 crore. The company is not raising any capital to invest in its business activities.
CDSL on Friday raised Rs 154.07 crore from 15 anchor investors ahead of the IPO.
The book running lead managers to the offer include Haitong Securities India Pvt Ltd, IDBI Capital Markets and Securities Ltd and YES Securities (India) Ltd. CDSL is the second largest depository in the country.
