CDSL raises $24m from anchor investors ahead of share floatation

Dhaka,  Fri,  18 August 2017
Published : 17 Jun 2017, 21:07:01
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CDSL raises $24m from anchor investors ahead of share floatation



Securities depository firm Central Depository Services (India) Ltd (CDSL) on Friday said that it has raised Rs 1.54 billion by allotting shares to anchor investors ahead of its initial public offering, which opens on 19 June, reports Livemint.com.

 In a statement to stock exchanges, the company said that it has allotted a total of 10.3 million shares to 15 anchor investors at Rs149 per share. CDSL has priced its shares in a price band of Rs145-149 per share for the IPO. The anchor book is that portion of an IPO that bankers can allot to institutional investors on a discretionary basis.

 Anchor book subscription opens a day before the launch of an IPO and acts as an indicator of institutional investor interest. Institutional investors who participated in the anchor book allocation included FIL Investments (Mauritius) Ltd, ICICI Prudential Dividend Yield Equity Fund, HDFC Standard Life Insurance Co. Ltd, IDFC Equity Fund, HSBC Indian Equity Mother Fund, Axis Mutual Fund, IIFL Special Opportunities Fund, Abu Dhabi Investment Authority, and Goldman Sachs India Limited. The CDSL IPO, a pure offer for sale, will see the company's existing shareholders-stock exchange BSE India Ltd, the country's largest lender State Bank of India Ltd (SBI), Bank of Baroda Ltd and The Calcutta Stock Exchange-sell around 35.16 million shares.

At the upper end of the price band, the share sale will fetch these shareholders a total of Rs 5.24 billion. The company is not raising any capital to invest in its business activities. BSE, which is selling 27.2 million shares in the IPO, will receive Rs 4.05 billion through the IPO (at the upper end of the price band), while other sellers such as SBI, Bank of Baroda and The Calcutta Stock Exchange will make Rs 711 million, Rs 323 million and Rs 149 million, respectively. Collectively, these selling shareholders own a 65.65 per cent stake in CDSL. BSE, which owns a 50.05 per cent stake in the company, will see its stake reduce to 24 per cent after the offering. SBI's stake will drop to 5.0 per cent. CDSL serves various customers such as depository participants, companies, capital market intermediaries and insurance companies.

For depository participants, the company offers dematerialization for a wide range of securities, including equity shares, preference shares, mutual fund units, debt instruments and government securities.
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