CDSL Rises 76% Above IPO Price On Stock Market Debut
Asia’s first depository Central Depository Services (India) Ltd. listed at a premium of 68 percent on the National Stock Exchange at Rs 250. The stock went on to gain as much as 80 percent, after listing. The company promoted by the Bombay Stock Exchange is the eighth company to list at a premium in 2017. The shares had been issued at Rs 149 apiece in the initial public offering.
The stock closed at Rs 261.6 per share, 76 percent higher than the issue price.
The IPO had received an overwhelming response from investors with the offer being subscribed 170 times, making it the most subscribed maiden issue in over a decade.
The qualified institutional buyers (QIBs) portion was oversubscribed 149 times, non-institutional segment 563 times and retail investors 23.8 times.
“Price it right and you will always find buyers,” said PS Reddy the managing director and chief executive officer of CDSL to BloombergQuint, after the listing ceremony. The depository now hopes to capitalise on its retail investor base to increase its clientele.
CDSL raised Rs 154.07 crore from 15 anchor investors ahead of the IPO. The company is not planning to raise any capital to invest in its business activities.
The stock rose 5.4 percent after opening, to Rs 263 per share, as of 12:51 p.m.