CDSL Stock Surges 13% to Record High on Bonus Share Announcement
Central Depository Services Limited (CDSL) Shares saw a significant 13% surge in today’s trading, reaching a new all-time high of ₹2,260 per share. This spike followed the company’s announcement via an official filing that it is considering issuing bonus shares. The Board of Directors is scheduled to meet on Tuesday, July 2, 2024, to discuss and potentially approve this proposal.
CDSL, a key player in India’s depository services sector alongside NSDL, manages electronic storage and exchange of assets and facilitates trade settlement through Demat accounts. In a milestone achievement last November, CDSL became the first listed depository to surpass 10 crore Demat accounts nationwide, currently managing an impressive 10.4 crore such accounts.
The company enjoys support from major institutions like the Bombay Stock Exchange, State Bank of India, and Bank of India. Recently, BSE divested a 4.54% stake in CDSL through a block deal.
CDSL’s growth is underscored by a robust increase in Demat accounts, with around 583 registered depository participants. The company’s revenue streams include transaction charges, settlement fees, and account maintenance fees paid by its participants. These fees contribute significantly to the company’s financial performance and are a key indicator of its revenue generation.
Since its debut in the secondary market in 2017, CDSL’s shares have consistently shown strong performance, reflecting investor confidence. Over the past year alone, the stock has surged by 107%, over three years by 128%, and in the last five years, investors have seen an impressive return of 908%, a testament to the company’s robust performance.
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If approved, this would be CDSL’s first issuance of bonus shares, a move that could potentially enhance shareholder value and mark a significant milestone in its corporate history.
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