India’s largest depository which provides depository services, data processing services, and others, declined by 6 percent in the day’s trade following reports of a likely stake sale of the company’s shares by Standard Chartered Bank for ~$151 Million.
With a market capitalization of Rs. 17,859 Crores, the shares of Central Depository Services (India) Limited were trading at Rs. 1,709, down 4.47 percent from its previous day’s close price of Rs. 1,788.90.
As per the reports Standard Chartered Bank was earlier likely to sell its entire 7.18 percent stake in the company consisting of 7.5 Million shares for a consideration of ~$151 Million.
Following the reports as per sources 1 Crore equity shares or 9.6 percent stake of the company worth Rs. 1,722 Crores changed hands in the day’s trade through a block deal at an average price of Rs. 1,690 per share.
CDSL also known as Central Depository Services Limited is the largest depository in India that provides depository services, data processing services, and others. CDSL has an incremental market share of approximately 78 percent.
The business segments in which CDSL operates are Depository, Repository, Data entry, and storage by providing its services to exchanges, clearing corporations, depository participants (DPs), issuers, and investors.
In Q3FY24, it generated 27 percent of its revenue from Annual Issuer Income, 25 percent from transaction charges, 17.79 percent from online data charges, 13.13 percent from IPO/CA Income, and 16.92 percent from other income.
Its revenue from operations grew by 51.73 percent from Rs. 141 Crores in Q3FY23 to Rs. 214 Crores in Q3FY24, accompanied by profits of Rs. 75 Crores to Rs. 107 Crores.
Written by: Bharath K.S
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