CDSL share price slumps over 6% amid report of block deal by Standard Chartered Bank
- CDSL share price dropped by over 6% as Standard Chartered Bank plans to sell its entire ownership through a block deal worth up to $151 million. The bank will sell 7.18% of its holdings in CDSL at a floor price of ₹1,672 per share.
Central Depository Services (India) Ltd (CDSL) share price slumped over 6% on Wednesday's session, following reports that Standard Chartered Bank intends to exit its investment by selling its entire ownership through a block deal. A term sheet that Mint examined indicated that the bank will sell 7.5 million shares, or 7.18% of its holdings in CDSL. CDSL share price today opened at ₹1,718.55 apiece on NSE.
It is projected that the deal will be worth up to $151 million in total. The shares are being sold by Standard Chartered at a floor price of ₹1,672 apiece, which represents a 6.5% discount from CDSL's Tuesday closing price of ₹1,788.90 on the NSE.
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Rajesh Bhosale, Equity Technical and Derivative Analyst, Angel One, said that post the overnight news of the stake sale, the stock prices have seen a gap-down opening. We have seen the spurt in volume with the stake sale happening at the opening. As of now, the momentum is weak but the overall trend is positive. Any dip further towards ₹1,600–1,550 would be an excellent opportunity to buy in the near term, whereas 1800 is immediate resistance.
According to news reports, around 1 crore shares, or 9.6% stake in CDSL worth ₹1,712.9 crore, changed hands.
The Standard Chartered selling process is reportedly being handled by JP Morgan India Private Limited. A CDSL representative did not immediately respond to an email, according to mint.
As to a JM Financial research report dated February 7, CDSL benefits from India's great economic potential and stable political and macroeconomic climate, which puts the country's capital markets in a good growth position. "However, we believe the stock remains fairly valued at current valuations of 44x/40x FY25/26E P/E," the research report stated.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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