CDSL Shares Decline By 6 Pc Amid Block Deal Exit Reports: Check Details (image source: Canva)
Central Depository Services Ltd (CDSL) shares on Wednesday declined by 6.4 per cent to hit a low of Rs 1,675 on the National Stock Exchange (NSE). The drop occurred amid reports of a significant block deal, with Standard Chartered Bank purportedly offloading its entire stake in the company.
Block Deal Initiated by Standard Chartered Bank
Investment banking firm JPMorgan reportedly initiated a term sheet for the block deal, where Standard Chartered Bank offered to sell its complete 7.18 per cent stake in CDSL at a floor price of Rs 1,672 per share. The potential deal size is estimated to be around Rs 1,250 crore at the floor price. However, an official confirmation regarding the transaction is expected later in the day upon the release of block deal data by the exchanges.
Establishment and Function of CDSL
CDSL was formed by the Bombay Stock Exchange (BSE) in collaboration with various banks, including State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, and Union Bank of India. As a depository, CDSL facilitates the holding of securities in electronic form, playing a crucial role in the Indian financial market infrastructure alongside the National Securities Depository Ltd (NSDL).
Shareholding and Financial Performance
As of December-end, foreign portfolio investors in Category-I held over 10 per cent stake in CDSL, while insurance companies owned about 8 per cent, and mutual funds nearly 13 per cent. In terms of financial performance, for the quarter ended December, CDSL reported a consolidated net profit of Rs 107 crore, marking a significant increase from Rs 75 crore reported a year earlier.
Milestones and Subsidiaries
In November of the previous year, CDSL achieved a milestone by becoming the first depository in India to register 10 crore Demat accounts. Apart from its core depository services, CDSL, along with its subsidiaries, offers various services to financial intermediaries and markets. Its subsidiaries include CDSL Ventures, CDSL Insurance Repository Ltd, and CDSL Commodity Repository Ltd.
