CDSL IPO opens today: 10 things to know

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The public offering of 24.83 million shares - excluding the anchor investors' portion - received bids for almost 28.75 million, or 1.16 times, stock-exchange data showed in the afternoon. Just like BSE was the first stock exchange to list in India, CDSL will be the first depository to be quoted on an Indian stock exchange.

CDSL is offering its shares to the public for an initial public offer (IPO) today.

The retail investors' portion was subscribed 1.7 times the shares reserved for them.

CDSL on Friday raised Rs154.07 crore from 15 anchor investors.

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Through this IPO, its existing promoter Bombay Stock Exchange (BSE) is selling 3.52 crore shares to public due to which its stake in CDSL will reduce to 24 per cent from 50.1 per cent now. The Bombay Stock Exchange is set to reduce its stake in CDSL from the current 50 per cent to 24 per cent through an offer for sale (OFS). CDSL has fixed a price band of Rs 145 to Rs 149 per share for its initial public offering which opens on June 19 and closes on June 21.

Stock trading in India is still considered niche and risky by a large portion of investing public, including people who end up investing in stock markets indirectly through mutual funds.

The company has seen its revenues grow at a CAGR of 3.67% over the past four years with the revenue in FY2016 being Rs 139.4 crore. For FY17, it reported a net profit of Rs. 87 crore on revenues of Rs. 146 crore. The company credits this strong profitability to its scalable business model. After providing total tax of Rs 29.98 crore, consolidated profit after tax stood at Rs 86.59 crore.