CDSL to file draft red hearing prospectus soon

Central Depository Services Limited is all set to get listed on the national bourses. CDSL which is promoted by BSE, is all set to file its draft red-hearing prospectus soon. According to some media houses the depository is eyeing a valuation between Rs 1,200 and Rs 1,500 crore.

BSE which currently owns 50 per cent stake in CDSL will dilute around 26 per cent stake in the IPO. Recently, BSE through a postal ballot had sought approval of its shareholders for the dilution in the depository.

Public issue will be entirely an offer for sale, with BSE diluting a large chunk of its holding, to comply with regulatory norms. HDFC Bank and some state-owned banks will also pare their holdings in CDSL through the offering. Earlier this year, BSE had sold around four per cent stake in CDSL to Life Insurance Corporation.

However, BSE must reduce it’s stake to 24 per cent. According to SEBI regulations, no stock exchange can own more than 24 per cent stake in a Market Infrastructure Institution. The deadline for BSE to bring down its holding in CDSL ends on March 31, 2017.