CDSL Share Price Fell 5% Amid Standard Chartered Bank Block Deal

CDSL share price dropped sharply on Wednesday, 27 March 2024 after a large block executed by Standard Chartered Bank. Analysts believed that Standard Chartered Bank had sold its entire holdings in CDSL.

The reputed investment bank, JP Morgan issued a term sheet for a block deal in which SCB offered to sell its 7.18% holdings at a floor price of Rs 1,672. The deal size is estimated to Rs 1,250 crore at a floor price. The confirmation of the deal will come in the evening when block deal data is released.

In the previous trading session, CDSL share price closed at Rs 1788 per share. However, on Wednesday morning, the large portion of holding is offloaded due to which CDSL share price opened gap down. It hit an intraday low of Rs 1675 and fell 6% approximately. 

CDSL was set up in 1999 by Bombay Stock Exchange (BSE) along with banks such as Bank of India, State Bank of India, HDFC Bank, Bank of Baroda, Standard Chartered Bank and Union Bank. 

FPI in Category I held over 10% stake in CDSL as of December end, insurance companies held about 8% and mutual funds nearly 13%.

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CDSL Financial Performance in Brief

In the third quarter of FY24, CDSL posted a net profit of 107 crore compared to Rs 75 crore for the same period a year ago. 

Company’s operating profit is on a slow and steady rise. In the first quarter of FY24, it reported an operating profit of Rs 80 crore. In the next two quarters the company reported an operating profit of Rs 128 crore and 130 crore respectively. 

CDSL Subsidiaries 

In November 2023, CDSL became the first depository to register 10 crore demat accounts. CDSL along with its subsidiaries provides services to financial intermediaries. Its subsidiaries are CDSL Ventures, CDSL Insurance Repository Limited and CDSL Commodity Repository Limited. 

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