BSE to divest 2.5% stake in CDSL through OFS route

The Bombay Stock Exchange (BSE), the oldest stock exchange in India, announced on Tuesday that its board has approved the sale of a 2.5% stake in Central Depository Services (India) Ltd through an Offer for Sale (OFS) route.

On the same day, the shares of CDSL closed 0.73% lower at Rs 1,002.50 on the NSE, while BSE saw a decline of 0.98% to settle at Rs 493.50.

CDSL generates its revenue from transaction charges, account maintenance charges, settlement charges paid by depository participants, as well as annual fees, corporate action, and e-voting charges paid by companies whose securities are admitted in the depository’s systems. It got listed on the NSE in 2017, with the BSE selling 26.05% of its 50.05% stake in CDSL through its IPO.

In addition to the divestment decision, the BSE board has also approved and released its third-quarter results. The company’s consolidated net profit for the three months ended December declined by 15% to Rs 52 crore, compared to Rs 61 crore in the same period last year. Its net profit also increased by 53% sequentially, from Rs 34 crore in the September quarter.

Furthermore, the company’s revenue from operations rose by 6% to Rs 203 crore in the quarter under review, compared to Rs 192 crore in the same quarter of the previous year. However, the total expenses of BSE surged by 24% year-on-year to Rs 188 crore.

Aside from being India’s oldest stock exchange, BSE provides an efficient and transparent market for trading in equity, currencies, debt instruments, derivatives, and mutual funds. It operates the largest SME platform in India, listing over 250 companies and continues to grow steadily. BSE StAR MF, its online mutual fund platform, processes over 27 lakh transactions per month and adds almost 2 lakh new SIPs (Systematic Investment Plans) every month.