Like its IPO subscription, CDSL made a spectacular debut on the NSE at Rs.250 v/s issue price of Rs.149; a jaw dropping premium of 68%.

Many had expected this to happen as it is pretty normal for issues, which has seen very high HNI participation to list at such huge premiums. Remember the IPO of D-Mart? Same story only that CDSL was even better than D-Mart or HUDCO.

The IPO had received the a subscription of over 170 times, the highest seen in a decade, with the HNI or non-institutional part receiving a whopping 563 times bid and QIB getting 148.71 times while retail investors was 23.83 times.

In our IPO Analysis we had stated, “While securities depository is a duopolistic market in India, low penetration leaves enough room for both players to co-exist and grow. Complementary services like commodity repository (approval in place, to be launched shortly), KYC services via subsidiary CDSL Ventures, e-insurance accounts, e-will etc. in addition to regular annual issuer and transaction charges should aid topline and bottomline going forward. Giving sound fundamentals, sector tailwinds and inexpensive pricing, the issue is a subscribe.”