109% Returns in 1 Year: Multibagger depository stock sits at 4% upper circuit on bonus share news; Record date fixed

CDSL Bonus Share: Central Depository Services (India) Ltd- India's largest depository services provider regarding active demat accounts, announced on Saturday, August 10, that its board has fixed the record date for its upcoming bonus issue as August 24, 2024. Shares of CDSL hit a fresh lifetime high in the previous session after announcing its bonus share update. CDSL has given multi-bagger returns to investors over the last one-year period.

In July, the depository services provider announced that it would issue one bonus share for every one share held. According to reports, this is the first instance of the depository company considering an issue of bonus shares to shareholders. CDSL will use free reserves including general reserves and retained earnings of the company to fund the issuance of bonus shares.

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CDSL Bonus Share

CDSL said in a regulatory filing to the NSE, ‘’With reference to the captioned subject and our earlier intimation dated July 02, 2024, and pursuant to the provisions of Regulation 42 of the SEBI Listing Regulations, we wish to inform that the company has fixed the “record date” as Saturday, August 24, 2024.''

The bonus shares will be issued to the shareholders of the company in the ratio of 1:1, i.e., one new fully paid-up equity share of ₹10 each for every one existing fully paid-up equity share of ₹10 each held by the eligible shareholders of the company as on the record date,'' added CDSL.

The record date and bonus share are subject to the approval of shareholders in the upcoming 26th Annual General Meeting of the company to be held on August 17, 2024, and other statutory/regulatory approvals, consents, permissions, conditions, and sanctions, as required.

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CDSL Q1 Results

The leading depository reported a surge of 82 per cent to ₹134 crore in consolidated net profit during the April-June quarter of fiscal 2024-25 (Q1FY25), compared to ₹74 crore in the year-ago period. During the Q1 FY 2024-25, 99 lakhs new demat accounts were opened. CDSL became the first depository to register 12.5+ crore demat accounts as on June 30, 2024

Nehal Vora, MD & CEO said “India's capital markets have experienced growth, benefiting from shifting investor preferences toward capital market investments. CDSL’s performance in this quarter is a consequential result of these market dynamics and emphasizes on our role as the trusted wealth custodian of the investor.''

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CDSL Share Price Trend

CDSL gives services to several sub-sectors of the capital markets including retail investors, institutional investors such as AIF, and mutual funds. On Friday, shares of CDSL opened at ₹2,505 and gained nearly four per cent to hit a fresh 52-week high of ₹2,594.85, before settling 4.60 per cent higher at ₹2,566.15 apiece on the NSE. The company commands a market cap of ₹26,816.27 crore.

According to Trendlyne data, CDSL has given better returns compared to Nifty 50 and Sensex in one year. In the past month, the stock gave 11.63 per cent returns, against -0.27 per cent and -0.8 per cent returns by Nifty 50 and Sensex, respectively. CDSL has given multi-bagger 109.71 per cent returns in the last one year, compared to 24.12 per cent and 20.77 per cent by Nifty 50 and Sensex respectively.