"CDSL added 85 lakh accounts in the December quarter, which was up 88 per cent growth YoY. CDSL maintained its leadership position with a 75.6 per cent market share and 90 per cent incremental share, a brokerage said."
Shares of Central Depository Services (India) Ltd (CDSL) will be in focus on Wednesday morning as Standard Chartered Bank is reportedly looking to sell its entire 7.18 per cent stake in the via block deal. As per a report CNBC TV-18, the floor price for the transaction is set at Rs 1,672 per share and the deal size is estimated at $151 million. Business Today could not independently verify the report.
The foreign bank is said to have put 75 lakh shares on block and the floor price was at 6 per cent discount to Wednesday's closing price. CDSL shares ended at Rs 1,785 on NSE, down 0.13 per cent. The listed depository offers facilitates holding and transacting securities in the electronic form and settlement of trades on stock exchanges. CDSL maintains and services 10 crore-plus demat accounts of investors or beneficial owners (BOs) spread across India.
CDSL recently reported healthy December quarter results, led by growth in market-linked revenue and a stable annuity stream. The growth was driven by a jump in transaction revenue, IPO/corporate action, and KYC fetch/creation, offset by seasonally weak e-voting revenue. CDSL added 85 lakh accounts in the December quarter, which was up 88 per cent growth YoY. CDSL maintained its leadership position with a 75.6 per cent market share and 90 per cent incremental share.
"We expect strong growth, supported by (1) strong BO account addition, (2) higher transaction revenue, and (3) stable annuity revenue. The insurance opportunity remains an option value and will aid growth subject to regulatory push. The compulsory Demat of non-small private limited companies will aid issuer growth. Higher investment in technology, increasing employee cost and regulatory compliance are leading to higher costs (+30% in 9MFY24), and EBITDA margins will be in the range of 60-63 per cent," HDFC Institutional Equities said last month
CDSL along with its subsidiaries also provides a host of services to the financial intermediaries and markets. For example, CDSL Ventures Limited (CVL) is a wholly owned subsidiary of CDSL and the 1st and largest KYC Registration Agency (KRA). CDSL Insurance Repository Limited (CDSLIR) is a company registered under the Companies Act, 1956. CDSL IR has received registration certificate from Insurance Regulatory and Development Authority of India (IRDAI) to act as an ‘Insurance Repository’ under the Guidelines on Insurance repositories and electronic issuance of insurance policies dated 29th May 2015.
CDSL Commodity Repository Limited allows the farmer, farmers producer organizations (FPOs), manufacturers, etc, to obtain electronic warehouse receipts (negotiable or non-negotiable) [eNWRs or eNNWRs] in a demat account against deposit of commodities in any of the warehouses registered with Warehousing Development and Regulatory Authority (WDRA).
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