CDSL board approves its first ever bonus issue of shares, stock falls; check details

The board of Central Depository Services Limited (CDSL) has recommended the issue of bonus shares to the shareholders of the company in the ratio of 1:1, the company said. However, shares of CDSL ended 2.10% lower at Rs 2386.85 on Tuesday against the previous close of Rs 2438 on NSE. The stock is not listed on BSE.

Total 49.41 lakh shares of the firm changed hands amounting to a turnover of Rs 1197.26 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 75.6, signaling it's trading in the overbought territory. CDSL shares stand higher than the 5 day, 10 day, 50 day, 100 day, 150 day and 200 day moving averages.

The depository has considered an issue of bonus shares to shareholders for the first time ever.

The company 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.

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.

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.

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.

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.