CDSL stock surges 13% on news of potential bonus share issuance

From Mint: 2024-06-28 02:54:40

Shares of Central Depository Services Limited (CDSL) surged 13% to a record high of ₹2,260 on news of potential bonus share issuance, subject to board approval on July 2, 2024. If approved, this would be CDSL’s first bonus offering, marking a significant milestone for the company in India’s depository sector.

CDSL became the first listed depository to exceed 10 crore demat accounts in India, currently managing 10.4 crore such accounts. The company’s growth is supported by major institutions like the Bombay Stock Exchange, State Bank of India, and Bank of India, with recent investor activity including a 4.54% stake sale by BSE.

With 583 registered depository participants, CDSL’s growth is driven by rising demat accounts and revenues from transaction fees and account maintenance charges. Since its market debut in 2017, CDSL’s shares have consistently delivered strong returns, with a 107% surge in the past year, 128% over three years, and an impressive 908% return over the last five years.

Investors are advised to consult with financial experts before making any investment decisions to ensure informed choices and maximize potential returns.



Read more at Mint: CDSL stock skyrockets 13% to hit record high as company considering bonus shares