BSE Cashes Out 5% Stake in CDSL for Rs 586 Crore: What It Means for Investors

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BSE Sells 5% Stake in CDSL for Rs 586 Crore in a Block Deal

The Bombay Stock Exchange (BSE) has sold a 5 percent stake in Central Depository Services (India) Ltd (CDSL) for Rs 586 crore in a block deal on Wednesday, June 14, 2023. The deal was first reported by CNBC-TV18 as an exclusive.

According to the sources, BSE offloaded 56.3 lakh shares or 5.4 percent equity stake in CDSL at a price of Rs 1,040 per share. The shares were sold to institutional investors, including mutual funds and foreign portfolio investors.

The block deal reduced BSE’s holding in CDSL from 20 percent to 15 percent. BSE acquired a 51 percent stake in CDSL in 1999 and gradually reduced it over the years through various stake sales. In 2017, BSE sold a 26 percent stake in CDSL through an initial public offering (IPO) at a price of Rs 149 per share.

CDSL is one of the two depositories in India that hold securities of investors in electronic form. It provides services such as dematerialization, rematerialization, account maintenance, settlement of trades, and corporate actions. As of March 31, 2023, CDSL had over 4 crore active demat accounts and over 600 depository participants across the country.

The block deal comes at a time when CDSL’s share price has surged over six-fold in the past year, driven by strong growth in its business amid the pandemic-induced boom in the capital markets. CDSL’s revenue increased by 36 percent year-on-year to Rs 378 crore and its net profit jumped by 68 percent year-on-year to Rs 201 crore in the financial year 2022-23.

However, the block deal also triggered a sharp correction in CDSL’s share price on Wednesday. The stock fell by 4 percent to close at Rs 1,005.65 on the National Stock Exchange (NSE), after hitting a record high of Rs 1,050 earlier in the day. 


In conclusion, BSE’s block deal in CDSL was a strategic move to monetize its stake in the depository service provider and to comply with the regulatory norms. The deal also reflected the strong demand for CDSL’s shares in the market, as the company has witnessed robust growth in its business amid the pandemic-induced boom in the capital markets. However, the deal also triggered a correction in CDSL’s share price, as some investors booked profits after the stock hit a record high. BSE’s share price also rose after the deal, as the exchange gained from the stake sale. The deal has implications for both BSE and CDSL, as well as for the investors and the depository industry in India.


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