CDSL IPO | Central Depository Services DRHP IPO Review |

Checkout information on Central Depository Services Limited (CDSL) IPO Details, Capital to be raised, CDSL Draft Red Herring Prospectus filed with SEBI and also IPO Review. The IPO of Central Depository Services  will likely go live mid next year. Through this IPO, the existing shareholders of CDSL are planning to sell around 35 Million Shares. In our previous posts, we have already provided information on Radio City IPO and DMart IPO.

Central Depository Services IPO CDSL IPO DRHP SEBI IPO Review Date IPO Status

Central Depository Services IPO DRHP

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Issue Capital (approx) Rs.350 Crore
Issue Date Mid 2017
IPO Type Pure Offer
Shares for Sale 35,167,208


Why is CDSL going for this IPO

the Central Depository Services IPO will be a pure offer for sale by existing shareholders – BSE Ltd, State Bank of India Ltd, Bank of Baroda Ltd and The Calcutta Stock Exchange.

BSE, SBI, Bank of Baroda and The Calcutta Stock Exchange together hold 65.65% stake in CDSL, with BSE alone holding 50%.

CDSL IPO Managers

Central Depository Services has appointed Axis Capital Ltd, Edelweiss Financial Services Ltd, Nomura Financial Advisory and Securities (India) Pvt. Ltd, SBI Capital Markets Ltd, Haitong Securities India Pvt Ltd, IDB Capital and Yes Securities (India) Ltd to manage the IPO.

What is a Depository : CDSL IPO

A Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry.

The Depository Participant (DP), who as an agent of the depository, offers depository services to investors. According to SEBI guidelines, financial institutions, banks, custodians, stockbrokers, etc. are eligible to act as DPs.

The investor who is known as beneficial owner (BO) has to open a demat account through any DP for dematerialisation of his holdings and transferring securities.

About Central Depository Services Limited

The balances in the investors account recorded and maintained with CDSL can be obtained through the DP. The DP is required to provide the investor, at regular intervals, a statement of account which gives the details of the securities holdings and transactions.

The depository system has effectively eliminated paper-based certificates which were prone to be fake, forged, counterfeit resulting in bad deliveries. CDSL offers an efficient and instantaneous transfer of securities.

CDSL was initially promoted by BSE Ltd. which has thereafter divested its stake to leading banks as “Sponsors” of CDSL.

CDSL Milestones

CDSL was set up with the objective of providing convenient, dependable and secure depository services at affordable cost to all market participants. Some of the important milestones of CDSL system are:

  • CDSL received the certificate of commencement of business from SEBI in February, 1999.
  • Honourable Union Finance Minister, Shri Yashwant Sinha flagged off the operations of CDSL on July 15, 1999.
  • All leading stock exchanges like the BSE Ltd, National Stock Exchange and Metropolitan Stock Exchange of India have established connectivity with CDSL.

Promoters : CDSL IPO

CDSL was promoted by BSE Ltd. Over a period of time, BSE Ltd. has divested its stake to leading Banks as “Sponsors” of CDSL. The initial capital of the company is 104.50 crores(INR). The list of shareholders with effect from 14th October, 2016 is as under.

Name of shareholders Equity Share
BSE Ltd. 50.05%
Bank of India 5.57%
Bank of Baroda 5.07%
State Bank of India 9.57%
HDFC Bank Limited 7.18%
Standard Chartered Bank 7.18%
Canara Bank 6.45%
Life Insurance Corporation of India 4.15%
Union Bank of India 1.91%
Bank of Maharashtra 1.91%
The Calcutta Stock Exchange Limited 0.96%

Board of Directors : CDSL IPO

Creditors Details : CDSL IPO

Sundry Creditors
Group Summary
Sundry Creditors
Particulars  30-Sep-2016
Closing Balance
Debit Credit Rs
The Stock Exchange,Mumbai 6,31,448.00
VDA Infosolutions Pvt Ltd 23,78,650.00
Grand Total 0.00 30,10,098.00

Conclusion

CDSL has a wide network of DPs, operating from over 10,000 sites, across the country, offering convenience for an investor to select a DP based on his location.

The DPs are directly connected to CDSL thereby providing on-line and efficient depository service to investors.

CDSL has kept its tariffs very competitive to provide affordable depository services to investors.

A DP, which registers itself with CDSL for Internet access, can in turn provide demat account holders with access to their account on the Internet.