Shares of Central Depository Services Limited (CDSL) surged 13% in today's intraday trade to hit a fresh record high of ₹2,260 apiece following the company's announcement via an exchange filing about its consideration of issuing bonus shares.
The Board of Directors is scheduled to convene on Tuesday, July 02, 2024, to discuss and potentially approve this proposal.
“Meeting of the Board of Directors of Central Depository Services (India) Limited (“CDSL/Company”) is scheduled to be held on Tuesday, July 02, 2024, inter alia, to consider and approve the proposal for issuance of bonus shares, if any, subject to the approval of the shareholders of the company,” the company said in an exchange filing.
If approved, this would mark CDSL's first issuance of bonus shares, as indicated by available exchange data. CDSL, one of India's two leading depositories alongside National Securities Depository Ltd. (NSDL), facilitates the electronic storage and exchange of assets and the settlement of trades through Demat accounts.
In November, CDSL became the first listed depository to register over 10 crore demat accounts nationwide, currently managing 10.4 crore of such accounts.
It enjoys backing from major institutions like the Bombay Stock Exchange, State Bank of India, and Bank of India. Recently, BSE sold a 4.54% stake in CDSL through a block deal.
With approximately 583 registered depository participants, CDSL has seen robust growth driven by a significant increase in demat accounts.
The company derives revenues from transaction charges, settlement charges, and account maintenance fees paid by its participants. Since debuting in the secondary market in 2017, the company's shares have consistently shown strong performance, delivering impressive returns.
In the past year alone, the stock has surged by 107%. Over the course of three years, it has rallied by 128%, and in the last five years, investors have seen an outstanding return of 908%.
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