Share price of Central Depository Services (India) Ltd (CDSL) fell over 6% today (March 27) after it was reported.
That Standard Chartered Bank intends to exit its investment by selling its entire ownership through a block deal. Reports claimed that the bank will sell 7.5 million shares- 7.18% of its holdings in CDSL.
CDSL share price today
Following this, CDSL share price opened at ₹1,718.55 apiece on NSE today. The deal is projected to be worth up to $151 million in total and the shares are being sold by Standard Chartered at a floor price of ₹1,672 apiece. This is at a 6.5% discount from CDSL’s March 26 closing price of ₹1,788.90 on the NSE.
Standard Chartered Bank likely to sell entire 7.18% stake in CDSL
As per reports, around 1 crore shares, or 9.6% stake in CDSL worth ₹1,712.9 crore, changed hands and the entire Standard Chartered selling process is being handled by JP Morgan India Private Limited.
CDSL financials: What you need to know
As per a JM Financial research report, CDSL benefits from India’s great economic potential and stable political and macroeconomic climate. “However, we believe the stock remains fairly valued at current valuations of 44x/40x FY25/26E P/E,” the research report stated.
CDSL received certificate of commencement of business from SEBI in February 1999 and in the December quarter, CDSL’s sales rose 44% to ₹169.5 crore while its standalone net profit rose 37% to ₹86 crore on an annual basis.