Skip to main content

CDSL IPO Review

Most awaited Central Depository Services (India) Limited (CDSL)  IPO hits the market next week. Incorporated on 12th December 1997, CDSL is the Leading Securities Depository in India by incremental growth of Beneficial Owner (“BO”) accounts over the last 3 Fiscals and by the total number of registered Depository Participants (“DPs”), as at the end of Fiscal 2016. CDSL offer services to the Depository Participants and Other Capital Market Intermediaries, Corporates, Capital Market Intermediaries,  Insurance Companies and Others.

cdsl ipo review

CDSL IPO Details:

 Price Band : Rs.145 - 149
Issue Size ( Rs.) Rs.509.92 Cr - 523.99 Cr.
Issue Size: 700,000 Equity Shares.

Bid Lot: 100 Equity Shares and in multiples thereafter.
Offer Period;  Monday, June 19 - Wednesday, June 21, 2017.

CDSL has a wide network of DPs, who act as points of service for their investors, operating from over 17,000 sites across the country. As of April 30, 2017, CDSL has 589 DPs servicing across 29 States and 7 Union Territories including 2 Overseas Centres. CDSL will continue to diversify their product and service offerings depending on investors' needs. They have received the LOI to register as a Warehouse Repository.  CDSL has also planning to expand their NAD project to include more Educational Institutions in the future.

At Rs. 149 per share, company's market cap will be Rs. 1,557 crore, with EV of Rs. 1,009 crore. This translates into EV/EBITDA multiple of 8.4x and 7.3x based on FY17 and FY18E earnings, and a PE multiple of 18x and 17x respectively, which is not expensive.

Giving sound fundamentals, sector tailwinds and inexpensive pricing, the issue is good for long term.

Labels:

Comments

Post a Comment

Popular posts from this blog

Your Bill Amounts Are Going To Increase From June 1, 2016

Service tax is a tax levied by the government on service providers on certain service transactions, but is actually borne by the customers. It is categorized under Indirect Tax and came into existence under the Finance Act, 1994. Union Finance Minister, Arun Jaitley, in his budget announcements proposed to impose a cess, called the Krishi Kalyan Cess, @ 0.5% on all taxable services. The present rate of service tax will be hiked to 15 per cent from June 1, 2016, from 14.5 per cent. Take a look at what gets expensive:



Phone Bills: Your phone bills are going to go up. So, pay a good 15 per cent now on service tax on phone bills.

Restaurant Bills :If you are dining in a restaurant that already has service tax applicable, you are going to pay more on your eating out. Though 0.5 per cent on a single bill may not mean much, frequent diners may end-up paying a lot during the year.

Travelling: You will have to pay more for air travel, as there is a service tax on tour operators and travel agents.

…
2 comments
Read more

What is Gold ETF - Gold Bees, Reliance Gold,Kotak Gold

What is Gold Bees or Gold ETF?

Gold ETFs are open-ended mutual fund schemes that will invest the money collected from investors in standard gold bullion (0.995 purity). The investors' holding will be denoted in units, which will be listed on a stock exchange.They provide returns that would closely track the returns from physical gold in the spot market.

An investor can buy and redeem the units either directly from the mutual fund or from the stock exchange.Presently there are many Gold ETFs traded in NSE India. Some of the listed Gold ETFs are GoldBees,Reliance Gold,Kotak Gold,UTI Goldshare



Why choose Gold?
Gold holds its own in any investment evaluation on its strengths as a hedge against inflation, value in the event of political uncertainties and its traditionally negative co-relation with other asset classes such as stocks, fixed income securities and commodities.

The value of goods and services that gold can buy has remained stable unlike currencies that have seen significant…
54 comments
Read more

What is NIFTY BEES - ETF?

NIFTY BEES - is the first ETF (Exchange Traded Fund) in India, which seeks to provide investment returns that closely correspond to the total returns of securities as represented by the S&P CNX Nifty Index. It gives you the most diversified exposure at lowest possible unit size. Approximately value of Nifty bees will be 1/10th value of the prevailing Nifty price.

ETFs are one of the latest financial innovations and any new concept takes time to be known widely. Globally it took more then five to seven years before it could be of any significant size. In India, it was introduced with Rs 21 crore in size , a fraction of the mutual fund industry, it has come far with more than Rs 700 crore in size with six ETFs.




The Nifty BeES also scores over other index funds due to its low tracking error and expense ratio, apart from easier tradeability as it is listed in the NSE. One can also consider doing an SIP in Nifty BeES.

Some of the reasons to invest in Nifty Bees : Investing in Exchange …
45 comments
Read more