CDSL’s IPO going to open on Monday. Now Question is ” Should Retail Investors Apply this IPO or Not ?”
Central Depository Services (India) Limited (CDSL), a subsidiary of BSE Limited operates as a securities depository in India. They offers various services, such as account opening, dematerialization, processing delivery and receipt instructions, account statement, re-materialization, pledging, nomination, transmission of securities, change in address, bank account details and SMS services for depository participants.
|IPO Open :||19-June-2017 to||21-June-2017|
|Face Value :||Rs. 10 Per Equity Share|
|Issue Price :||Rs. 145 – 149 Per Share|
|Bid Lot :||100 Equity Share||Then Multiply by 100|
|Listing On :||NSE Only||BSE is the Promotor|
|Issue Size :||Rs.509.92 Cr. on Lower End||Rs.523.99 Cr. on Upper End|
|Allotment On:||29-June-2017 ASBA Unlocking:||29-June-2017|
CDSL has already raised Rs 154.07 crore by issuing 1.03 crore equity shares to 15 anchor investors – Abu Dhabi Investment Authority–Behave, FIL Investments (Mauritius), Goldman Sachs India, SBI Magnum Tax Gain Scheme, ICICI Prudential, HSBC Indian Equity Mother Fund, Tata MF, DSP Blackrock Equity Savings Fund etc. These shares were allotted at a price of Rs 149 a piece.
Reason For Apply
1 ) Available at just 17.66 P/E which is reasonable as per recent Market
2) CDSL has only 1 business competitor (NSDL)
3) Due to Demonetization ,Retail Public Saving locked in Banks and Bank Fix Deposit Rate going down and down , so Middle Class Public turn in to Stock Market for More Investment Return which give benefit to CDSL .
4) There are Lots of revenue gets CDSL like Transaction Charge, Account Maintenance Charge, Settlement Charge paid by depository Participate (DP’s), Annual Fees, Corporate Action and E-voting charges.
5) 45 per cent Market Share in terms of Numbers of Account
6) Last and Most Important is Its Latest Grey Market Premium is Near 105 Rs.
So Finally I suggest that we have to Apply for CDSL on Listing Gain as well as Longterm Investment Point Also.
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