The initial public offering of BSE’s depository arm, the Central Depository Services (India) Ltd., received strong demand on the second day of the issue led by retail investors.
Buyers bid for 7.55 times the shares on offer, according to data available with the stock exchanges as of 5 pm. The IPO recieved bids for 18.75 crore shares compared to the 2.4 crore shares CDSL put on offer.
Demand was led by retail investors who bid for 10.3 times the shares on offer for them. The portion set aside for qualified institutional buyers was subscribed 6.54 times while the high net-worth individuals category was subscribed 3.36 times.
CDSL is looking to raise Rs 524 crore through its IPO which will dilute parent BSE's stake in the depository to meet the listing norms of the Securities Exchange Board of India.
CDSL on Friday raised Rs 154.07 crore from 15 anchor investors. The price band for the share sale has been fixed at Rs 145-149. Through the offer, which closes on June 21, CDSL's promoter and leading stock exchange BSE plans to sell 3.51 crore shares.
The book running lead managers to the offer include Haitong Securities India Pvt Ltd, IDBI Capital Markets and Securities Ltd and YES Securities (India) Ltd. CDSL is the second largest depository in the country.