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CDSL IPO gets phenomenal response, while GTPL Hathway lags

 The IPO of India's second largest depository, CDSL, received a huge response, and was oversubscribed 170.11 times on its final day, getting more than Rs 62,929 crore worth of bids against issue size of Rs 369.9 crore (excluding anchor investors' portion). The rqualified institutional buyers portion was oversubscribed 148.70 times while those reserved for high net-worth individual wass subscribed 563 times. Retail individual investors, who are eligible for up to Rs 2 lakh worth of shares, applied for 22.98 times their portion. On the other hand, despite upbeat markets the IPO offering for cable TV and broadband services provider GTPL Hathway Ltd has met with a lukewarm response, with subscriptions of 41% on the second day of the initial public offering (IPO). The portion of shares reserved for institutional investors was subscribed 69%, while the portions reserved for high net-worth individuals and retail investors were subscribed 15% and 36%, respectively. The offer closes today on June 23. The company set a price band of Rs. 167-170 per share for the initial share sale, and has planned to use the IPO proceeds to reduce debt.
22-06-2017
Bigul

CDSL IPO oversubscribed on Day 1, as investors flock to offering

 The CDSL IPO has been subscribed twice over on day one of bidding itself. Of their respective quota of reserved shares, institutional investors bid 97%, non-institutional investors bid about 61.29%, retail investors bid an impressive 348.47%, while employees bid about 12.09%. The total subscription at the end of day 1 was a thumping 208.8%. The company is in a limited competition market, as one of two depositories in India, with rapid growth and less volatile revenues than its competitor NSDL. Brokerage houses have universally recommended this IPO as a long term hold, which has driven retail investors to bid for shares. The IPO, worth up to Rs 524 crore, will list on NSE and the retail allocation has been fixed at 35%. Post listing, CDSL will be the first depository to be quoted on an Indian stock exchange. On Friday, the issue had raised Rs 154.07 crore by issuing 1.03 crore equity shares to 15 anchor investors, including the SBI Magnum Tax Gain Scheme, ICICI Prudential, Abu Dhabi Investment Authority and Goldman Sachs India.
20-06-2017
Bigul

CDSL IPO fully subscribed on Day 1

 The initial public offering (IPO) of Central Depository Services (India) Ltd (CDSL) was oversubscribed 1.01 times on the first day of issue today.
19-06-2017

CDSL IPO: Should you subscribe?

 The IPO for the Central Depository Securities (India) Limited (CDSL) closes on June 21, and has launched in the price band of Rs. 145-149. CDSL is one of two securities depositories in India, functioning in a duopoly market with a 43% market share in revenues in FY16. CDSL has raised Rs 154.07 crore from its 15 anchor investors. The price band for the IPO share sale is fixed at Rs 145-149. In terms of valuation, at the upper price band CDSL has been valued at 18.2x on FY17 earnings. The ROE on average for the past few years has been 17%. For analysts, the valuations and outlook appear strong. The depository system in India is large and growing rapidly, a Rs. 2.4 bn industry that has expanded at 12% CAGR over the past three years. The Indian equity markets’ capitalization was approximately 80% of India's estimated GDP as on FY17, which is 20% lower compared to the global average of 98%. This suggests that there is a lot of growth in the coming years, especially post demonetization and the moves by government to compel households and individuals to shift investments out of gold and cash, and into financial assets. Since FY09, savings in financial assets have seen a growth at 10% CAGR which indicates a rising interest of people in capital markets. The percentage of net investment in shares, mutual funds & debentures has seen even more startling growth, at 54% CAGR from FY12 to FY16. CDSL versus NSDLCDSL has been able to take advantage of this growth in investments, capturing a 59% share in incremental demat accounts opened. Its larger geo coverage compared to NSDL has helped - it has over 4,600 DP locations, compared to NSDL's 1,900+ DP locations. CDSL’s operating revenues are more stable, thanks to annual fees which form 39% of its revenues compared to 7% at NSDL. Transaction fees, which are more volatile revenues, accounted for 50%+ of NSDL's revenues, compared to 21% for CDSL. The company registered a 13.7% YoY growth in number of demat accounts in FY17, which stood at 12.4 mn investor accounts as on April 30, 2017. SMC Online and LKP Securities among others, recommended subscribing to the IPO.
19-06-2017
Bigul

CDSL IPO is likely to give gains to investors on listing, say brokerages

 Central Depository Services (India) Limited, or CSDL, is coming out with an initial public offering (IPO); issue opens on June 19 and closes on 21.
17-06-2017
Bigul

CDSL IPO offers growth at a reasonable price

 High operating profit margins, stable revenue streams along with addition of new growth avenues strengthen the prospects of India's second largest depository - Central Depository Services (CDSL). Promoted by BSE, the company is looking to raise up to ~524 crore through its initial public offering (IPO) slated to open for subscription on June 19. The depository, which holds securities in an electronic form, operates in an industry with high entry barriers and has limited capex requirements going forward. Large part of its costs are towards technology upgradations and employee-related expenses, which are more or less fixed. With stable revenues and addition of new income streams, the benefits of scale will enable the company to maintain its high margins. At the upper price band of ~149 per share and assuming a 15 per cent growth, the issue is priced at 16 times of the FY18 earnings, which is not expensive considering the strong prospects. There are no listed peers for CDSL. CDSL has...
14-06-2017
Bigul

CDSL public issue opens on June 19; price band fixed at Rs 145-149/share

 BSE-promoted CDSL plans to raise more than Rs 500 crore from its initial public offering (IPO). It has fixed the price band at Rs 145-149 per share. Central Depository Services (India) (CDSL) IPO...
12-06-2017

Indian companies line up Rs20,000 crore IPOs

 Hudco, NSE, Central Depository Services, Nakshatra World and Cochin Shipyard are among the names that plan to launch share sale offers in coming months
26-03-2017
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