CDSL IPO subscribed two times on Day 1 of issue
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New Delhi: The initial public offering (IPO) of Central Depository Services (India) Ltd (CDSL) was subscribed two times on Monday, the first day of the offering, according to data from stock exchanges.
As of 5pm, the portion of shares reserved for institutional investors was subscribed 97%, while the portions reserved for high net-worth individuals and retail investors were subscribed 61% and 3.48 times, respectively.
CDSL shares have been priced in a band of Rs145-149 per share.
The IPO, a pure offer for sale, will see the company’s existing shareholders—stock exchange BSE India Ltd, the country’s largest lender State Bank of India Ltd (SBI), Bank of Baroda Ltd and The Calcutta Stock Exchange—sell around 35.16 million shares.
At the upper end of the price band, the share sale will fetch these shareholders a total of Rs524 crore. The company is not raising any capital to invest in its business activities.
BSE, which is selling 27.2 million shares in the IPO, will receive Rs405.5 crore (at the upper end of the price band), while other sellers such as SBI, Bank of Baroda and The Calcutta Stock Exchange will make Rs71.1 crore, Rs32.3 crore and Rs14.9 crore, respectively.
Collectively, these selling shareholders own a 65.65% stake in CDSL. BSE, which owns a 50.05% stake in the company, will see its stake fall to 24% after the offering. SBI’s stake will drop to 5%.
CDSL serves customers such as depository participants, companies, capital market intermediaries and insurance companies.
Also on Monday, the initial share sale of pharmaceutical firm Eris Lifesciences Ltd was subscribed 75%, on the second day of offering.
The portion of shares reserved for institutional investors was subscribed 82%, while the portions reserved for high net-worth individuals and retail investors were subscribed 3% and 1.68 times, respectively.
The company has set a price band of Rs600-603 per share for the IPO. The offering, which closes on 20 June, will raise Rs1,741.1 crore at the upper end of the price band.
Last week, Eris raised Rs779.43 crore by selling shares to investors as part of the so-called anchor book allocation, a day ahead of the opening of its IPO.
The IPO is a pure offer for sale by existing investors of the company, and will not be raising any primary capital for investing in its business activities. Private equity firm ChrysCapital and other individual shareholders in the firm are offering to sell 28.87 million shares through the IPO.
ChrysCapital, which holds a 16.25% stake in the company, will sell all of its 22.34 million shares, while founder Amit Bakshi, who holds 39.97%, will sell a 0.5% stake. Other investors including Rakesh Shah, Rajendra Patel, Kausal Shah and Inderjeet Negi, too, will sell shares.
For ChrysCapital, an active investor in the Indian pharmaceutical and healthcare space, Eris Life’s IPO will provide another exit with a good return. ChrysCapital, which invested about Rs200 crore in Eris in 2011, will make about Rs1,347 crore through its exit, reaping close to seven times return.
Eris develops, manufactures and commercializes branded pharmaceutical products in select therapeutic areas within the chronic and acute categories like cardiovascular, anti-diabetics, vitamins, gastroenterology, and anti-infectives.
On Friday, telecom equipment maker Tejas Networks Ltd saw its initial share sale subscribed 1.88 times. GTPL Hathway Ltd and AU Small Finance Bank Ltd are also launching their IPOs this month.