Bombay Stock Exchange (BSE) owned Central Depository Services India Limited (CDSL) is planning to raise about Rs. 524 Crore through an initial public offering (IPO).
Company Background
Incorporated in 1999, Central Depository Services (India) Limited, a subsidiary of BSE Limited operates as a securities depository in India. CDSL offers various services including (1) account opening, (2) account statement, (3) bank account details, (4) change in address, (5) dematerialization, (6) nomination, (7) pledging, (8) processing delivery and receipt instructions, (9) re-materialization, (10) transmission of securities, and (11) SMS services for depository participants.
Working Area
- CDSL offers facilities to issuers to credit securities to a shareholder’s or applicant’s demat accounts; KYC services in respect of investors in capital markets to capital market intermediaries; and facilities to allow holding of insurance policies in electronic form to the holders of these insurance policies of various insurance companies.
- They provides other online services, such as (1) e-locker, (2) e-voting, (3) electronic access to security information, (4) electronic access to security information and execution of secured transaction, (5) mobile application and transactions using secured texting (6) national academy depository, and (7) drafting and preparation of wills for succession.
- It serves investors through intermediaries, such as (1) beneficial owners, (2) clearing members, (3) depository participants – DP, (4) issuer companies, and (5) registrar and transfer agents.
Company Promoters
BSE Limited is the promoters of the company
IPO Details
IPO Date & Listing
Financial Performance
Revenues –
The company has registered steady revenue growth in recent years. Topline has been increasing regularly for the last four years and jumped from INR 75 crore in FY2012 to INR 104 crore for the year ended March 2016.
Profits –
Though the company has shown steady growth in revenue, the company failed to registered steady growth in profits, though it was increasing. Starting from INR 47 crore of profit in FY2012, the company’s profitability improved to INR 63 crore in FY2016.
CONCLUSION –
Considering company’s valuation, financial parameters and the sector in which it is operating FinBlab recommends SUBSCRIBE ratings on this issue.
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