Blockbuster debut for CDSL stock on NSE

The Central Depository Services Limited stock on Friday made a blockbuster debut on National Stock Exchange at 80 premium over its IPO issueprice of Rs.149/share. Opening at Rs.250 the stock surged to high of Rs.268 within first 45 minutes with a volume of 1.5 crore shares traded. Analysts say the bumper listing was in line with the massive response received by the IPO of Rs.524 crore. Btetween 19-21 June it oversubscribed more than 170 times.  This has been the second big listing after Avenue Supermarts ( holding company in D'Mart chain) few months ago which on its listing day shot up 100 percent and is still trading with upside bias.

Dalal Street is thrilled by investors' confidence in primary market. There are many more issues (IPOs) lined up in 2017 and analysts expect them to do well.  Strong primary market, they claim, will have positive (bullish) impact on trading in the secondary market. CDSL has been listed only on National Stock Exchange since Bombay Stock Exchange is aholding company in CDSL with 24 percent stake. BSE diluted its 50 percent shareholding by selling 26 percent shares in the depository company with an impressive incremental growth since it was established in 1997. It was originally floated by BSE which then divested part of its holdinds to some leading banks as its sponsors. CDSL is one of the two depositories operating in the country that extend demat account facility to investors.  The institutional investment portfolio of the IPO was oversubscribed 149 percent, high net-worth individual's 563 time and retail segment was oversubscribed 24 times.

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