CDSL OFS comprise sale by Shares of CDSL by BSE Ltd, the promoter of Central Depository Services Limited (CDSL). The company said it will sell 41.80 lakh equity shares, constituting 4% of its stake in CDSL through an offer for sale. The stake-sale will happen through an offer-for-sale on the NSE on Thursday (for institutions) and on Friday (for retail investors).
The floor price of CDSL OFS has been fixed at Rs205. Currently, BSE holds a 24% stake (2.50 cr shares) in CDSL.
Updates
- Non retail cutoff likely to be above 223.8
About CDSL OFS
| Issue Period | 28-11-and 29-11-19 |
| Face Value | 10 |
| Floor Price | 205 |
| MP a Day before | 222 |
| % Discount of Floor Price | 8.29% |
| Base Offer (shares) | 41,80,000 |
| Base Offer in Rs. Crore | 86 |
| Total retail shares | 4,18,000 |
| Total retail in Rs. Cr. | 9 |
About CDSL
- Central Depository Services (India) Limited (CDSL) is a leading securities depository, promoted by BSE Ltd. and sponsored by other leading Banks.
- CDSL received the certificate of commencement of business from SEBI in February, 1999.
- CDSL offers a range of services for various clients, such as depository participants, capital market intermediaries, companies, insurance companies etc.
- CDSL facilitates holding and transacting in securities in the electronic form and facilitates settlement of trades on stock exchanges. These securities include equities, debentures, bonds, units of mutual funds, AIFs, certificate of deposits (CDs), commercial paper (CP), Government securities and Treasury Bills.
- All leading stock exchanges like the BSE Ltd, National Stock Exchange and Metropolitan Stock Exchange of India have established connectivity with CDSL.
CDSL Financials:
| Particulars / Rs Cr | Sep-19 | Jun-19 | Mar-19 | Dec-18 | Sep-18 |
| Net Sales | 52.66 | 58.4 | 50.95 | 45.78 | 53.67 |
| Other Income | 16.69 | 15.03 | 17.74 | 16.44 | 9.79 |
| Total Income | 69.35 | 73.43 | 68.69 | 62.22 | 63.46 |
| Total Expenditure | 28.15 | 35.76 | 22.89 | 23.37 | 20.86 |
| PBIDT | 41.21 | 37.67 | 45.8 | 38.85 | 42.6 |
| Interest | 0 | 0 | 0 | 0 | 0 |
| PBDT | 41.21 | 37.67 | 45.8 | 38.85 | 42.6 |
| Net Profit | 29.31 | 27.43 | 33.56 | 28.09 | 30 |
| EPS (Unit Curr.) | 2.81 | 2.63 | 3.21 | 2.69 | 2.87 |
| Equity | 104.5 | 104.5 | 104.5 | 104.5 | 104.5 |
| PBIDTM(%) | 78.26 | 64.5 | 89.89 | 84.86 | 79.37 |
| PATM(%) | 55.18 | 47.79 | 67.11 | 62.17 | 56.18 |
CDSL OFS : Salient points and Assessment
- Company is virtually debt free.
- Company has been maintaining a healthy dividend payout of 47.61%
- Earnings include an other income of Rs.48.17 Cr. .
- CDSL revenue stream is diversified..
- About 1/3rd of the revenue earned in annuity based.
- market More than 40% of the revenue is linked to markets and come from Sale Transactions, IPO/corporate action and KYC
- The demat of unlisted public companies in future could present a good opportunity to CDSL.
- CDSL Is not in F&O which could lead to price volatility post the OFS.
- CDSL valuations appear reasonable. The OFS is however quite small.
Standard disclaimer: I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk.