CDSL stock fell more than 6% to an intraday low of Rs 1,788.90 on the National Stock Exchange after Standard Chartered approached JP Morgan to sell its entire stake of 7.18% through a block deal for $151 million, as per media reports citing a term sheet by the investment banker.
The bank set the floor price for the deal at RS 1,672 per equity share, representing a 6.3% discount to the previous close of Rs 1,785. JP Morgan India is likely to be the advisor of the block deal, according to media reports.
The shares of CDSL have risen 2.3% in the past five days and nearly 27% in the last six months. The stock of the company has given 88% returns in the last year and more than 7 times in the past five years.
CDSL became the first depository in India to cross the mark of 50 million demat accounts in 2021. It is in direct competition with NSDL.
CDSL works as a godown of securities. It plays an important role in daily transactions. The book entry of all the electronic transactions that happened with depository participants is kept with CDSL.