Central Depository Services (India) Ltd (CDSL) shares, which closed at Rs 2,898.10 opened at Rs 1,500 today, showing a correction of 48.24% on NSE. The CDSL stock price almost halved from yesterday as the stock is trading ex-bonus in a ratio of 1:1. After the stock turned ex-bonus, the CDSL stock rose over to its 52-week high of Rs 1664.40 on NSE. The bonus issue by the depository came into effect today. Later, the CDSL stock ended at Rs 1,585 on Friday.
This means the company will issue one free share for ever one share held by shareholders as of the record date. August 24 was fixed as the record date. This implies that the number of CDSL shares in the stock market will double, bringing down the price of stock by nearly half on the NSE. However, market cap of CDSL will not be affected by the bonus issue.
The CDSL board announced its first ever bonus issue of shares in July this year.
CDSL will issue 10,45,00,000 equity shares with a face value of Rs 10 each as bonus shares, aggregating to a total of Rs 104.5 crore, CDSL said. The issuance of bonus shares shall be from capitalisation of free reserves including general reserves and retained earnings of the company subject to the approval of the shareholders.
The bonus issue will be equivalent to share capital of Rs 209 crore.
“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,” said the company in a filing to the exchanges.
In the current session, 44.85 lakh shares of the firm changed hands amounting to a turnover of Rs 679.25 crore. The stock has a beta of 0.9, indicating low volatility in a year.
In terms of technicals, the relative strength index (RSI) of CDSL stands at 75.2, signaling it's trading in the overbought territory on charts.
The bonus shares will be issued within two months from the date of the board approval, i.e. on or before September 1, 2024, the company said in July.
The board of the company also approved a hike in the authorised share capital of the company from Rs 150 crore divided into 15 crore equity shares of Rs 10 each to Rs 300 crore divided into 30 crore equity shares of Rs 10 each, the firm said.
CDSL reported a 82% rise in net profit for the quarter ended June 2024. Profit climbed to Rs 134.20 crore in the last quarter compared to the Rs 73.57 crore profit in the corresponding quarter of the previous year. Revenue in Q1 surged 72% to Rs 257.38 crore from Rs 149.68 crore in the same quarter last year.
Central Depository Services (India) is a Depository registered with SEBI. CDSL was set up with the objective of providing convenient dependable and secure depository at affordable cost to all market participants.