Central Depository Services plans to raise Rs 400 crore via
IPO
08/01/2015 16:31
Central Depository Services (CDSL) today said that it has initiated the process to launch an initial share sale. Its major shareholder BSE and a clutch of banks want to sell 25-30 per cent in the share depository for Rs 300-400 crore in a public offering, said two sources close to the development, reported media. If the stake sale happens at the expected price, it would value CDSL at approximately Rs 1,200 crore. Responding to an email query from ET, CDSL said it had no comments to offer in the matter. BSE also declined to comment. Promoters of CDSL and top officials of the depository had met some time ago to discuss the valuations and other details, the sources said. In addition to BSE, other large shareholders of CDSL include Standard Chartered Bank, HDFC Bank, State Bank of India and Canara Bank, among others. The stakeholders are seeking premium valuations due to regulatory restrictions in setting up such a new venture and the oligopolistic nature of depository operations in India. As of now, there are only two large depositories in the country — the CDSL and the National Securities Depository (NSDL). Between them, the two control 99 per cent of the equity market business. The CDSL has 93.97 lakh and the NSDL has 1.36 crore demat accounts.
08/01/2015 16:31
Central Depository Services (CDSL) today said that it has initiated the process to launch an initial share sale. Its major shareholder BSE and a clutch of banks want to sell 25-30 per cent in the share depository for Rs 300-400 crore in a public offering, said two sources close to the development, reported media. If the stake sale happens at the expected price, it would value CDSL at approximately Rs 1,200 crore. Responding to an email query from ET, CDSL said it had no comments to offer in the matter. BSE also declined to comment. Promoters of CDSL and top officials of the depository had met some time ago to discuss the valuations and other details, the sources said. In addition to BSE, other large shareholders of CDSL include Standard Chartered Bank, HDFC Bank, State Bank of India and Canara Bank, among others. The stakeholders are seeking premium valuations due to regulatory restrictions in setting up such a new venture and the oligopolistic nature of depository operations in India. As of now, there are only two large depositories in the country — the CDSL and the National Securities Depository (NSDL). Between them, the two control 99 per cent of the equity market business. The CDSL has 93.97 lakh and the NSDL has 1.36 crore demat accounts.
