CDSL shares drop 6% after Standard Chartered likely exits in Rs 1,250-crore block deal
CDSL) on Wednesday fell up to 6.4% to the day's low at Rs 1,675 on NSE amid a large block deal in which Standard Chartered Bank is believed to have sold its entire shareholding in the company.
Investment banker JPMorgan had last evening issued a term sheet for a block deal in which Standard Chartered Bank offered to sell its entire 7.18% stake at a floor price of Rs 1,672 per share.
The deal size is estimated to be worth Rs 1,250 crore at floor price. But a confirmation about the deal would come in the evening when exchanges release block deal data.
CDSL was set up in 1999 by BSE, along with banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank, and Union Bank of India.
Also read | StanChart Bank likely to sell entire 7.2% stake in CDSL via block deals
As a depository, CDSL facilitates the holding of securities in electronic form. CDSL and National Stock Exchange-promoted National Securities Depository Ltd are the only two depositories in India.
Foreign portfolio investors in Category-I held over 10% stake in CDSL as of December end, insurance companies about 8%, and mutual funds nearly 13%.
For the quarter ended December, CDSL reported a consolidated net profit of Rs 107 crore, compared to Rs 75 crore a year ago.
In November last year, CDSL became the first depository to register 10 crore Demat accounts.
CDSL, along with its subsidiaries, provides various services to financial intermediaries and markets. Its subsidiaries include CDSL Ventures, CDSL Insurance
