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CDSL Shares Tumble More Than 6% Following Standard Chartered Bank’s Block Deal Announcement

The share price of Central Depository Services (India) Ltd (CDSL) saw a decline of more than 6% during Wednesday’s trading, following the announcement that Standard Chartered Bank plans to divest its entire stake via a block deal. According to a document reviewed by Mint, the bank is set to offload 7.5 million shares, equating to a 7.18% stake in CDSL. The opening share price of CDSL on the National Stock Exchange (NSE) was recorded at ₹1,718.55 each.

The transaction is expected to reach a valuation of approximately $151 million. Standard Chartered has priced the shares at a base price of ₹1,672 each, which is a 6.5% discount to CDSL’s closing price of ₹1,788.90 on the NSE the preceding Tuesday.

Rajesh Bhosale, an analyst at Angel One specializing in equity technical and derivatives, remarked that the share price experienced a significant drop at the opening following the announcement of the stake sale, along with an increase in trading volume. He noted that while the current momentum appears weak, the overall trend remains bullish. Bhosale suggests that any further reduction in price to the range of ₹1,600–1,550 could present a favorable buying opportunity in the short term, with ₹1,800 acting as a key resistance level.

It was reported that approximately 100 million shares, representing a 9.6% interest in CDSL valued at ₹1,712.9 crore, were traded. The process of selling by Standard Chartered is being facilitated by JP Morgan India Private Limited. A response from a CDSL spokesperson to an inquiry was pending at the time of reporting, as per Mint.

A research note from JM Financial dated February 7 highlighted CDSL’s advantageous position, benefitting from India’s robust economic prospects and a stable political and macroeconomic environment conducive to capital market growth. Despite this positive outlook, the note considers the stock to be appropriately priced with current valuations standing at 44x/40x FY25/26E P/E ratios.