CDSL stock: After Central Depository Services Limited (CDSL) announced via an exchange filing that it is considering issuing bonus shares, the company’s shares shot up 13% in intraday trading today to reach a new record high of ₹2,260 per share.
On Tuesday, July 02, 2024, the Board of Directors is expected to meet to discuss and perhaps accept this plan.
Among other things, the purpose of the Tuesday, July 02, 2024 meeting of the Board of Directors of Central Depository Services (India) Limited (“CDSL/Company”) is to review and approve the proposal for the issuance of bonus shares, if any, subject to the approval of the company’s shareholders,” the company stated in an exchange filing.
Based on current exchange statistics, this would be CDSL’s first bonus share issuance if approved. Along with National Securities Depository Ltd. (NSDL), CDSL is one of India’s two top depositories. It makes it easier for assets to be stored and exchanged electronically and for trades to be settled using Demat accounts.
With 10.4 crore demat accounts under management, CDSL became the first listed depository in the country to register more than 10 crore accounts in November. -CDSL stock
Important organizations including the Bank of India, State Bank of India, and Bombay Stock Exchange support it. In a recent block deal, BSE sold a 4.54% interest in CDSL.
With over 583 depository participants enrolled, CDSL has experienced strong growth, mostly due to a notable rise in demat accounts.
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The company receives payment from its participants in the form of account maintenance fees, settlement charges, and transaction fees. Since making its secondary market debut in 2017, the company’s shares have continuously performed well and generated significant returns.
The stock has gained 107% just in the last year. It has increased in value by 128% in the last three years, and investors have received an exceptional return of 908% over the last five years.
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