PS Reddy, Managing Director and Chief Executive Officer, Central Depository Services (India) Ltd. seated on left with Bharat Sheth, Chief Financial Officer, Central Depository Services (India) Ltd. at the CDSL IPO press conference in Mumbai, India. (Source: Company)

CDSL To Debut On Exchanges Today: Here’s The Listing Math

BSE’s securities depository arm, Central Depository Services (India) Ltd., will make its stock market debut on Friday, after becoming the most subscribed IPO in more than a decade.

Shares are expected to be listed at a steep premium of Rs 100 per share, according to dealers who refused to be quoted. This translates into a listing gain of 67.1 percent on the issue price of Rs 149.

A few high net-worth individuals who had applied for the IPO through financing told BloombergQuint that the finance cost was in the range of Rs 84-90. Considering the issue price of Rs 149 and the finance cost, a listing price of Rs 233 would allow these investors to break even. So the issue will need to list at a premium of at least Rs 84 above the issue price or above Rs 233 for the non-institutional investors to even be able to break even. Hence, dealers expect the likely listing price to be around Rs 240-250.

The initial public offer of the securities depository received an overwhelming response from investors as it was subscribed a staggering 170 times the number of shares on offer in three days of bidding. The qualified institutional buyers (QIBs) portion was oversubscribed 149 times, non institutional investors 563 times and retail investors 23.8 times.