Standard Chartered to Exit Investment in CDSL

Standard Chartered to Exit Investment in CDSL/Bloomberg
Standard Chartered to Exit Investment in CDSL/Bloomberg
Standard Chartered to Exit Investment in CDSL/Bloomberg
Standard Chartered to Exit Investment in CDSL/Bloomberg

Standard Chartered to Exit Investment in CDSL

Standard Chartered to Exit Investment in CDSL

Standard Chartered to Exit Investment in CDSL

Standard Chartered Bank is divesting its entire stake in Central Depository Services (India) Ltd (CDSL) through a block deal. The bank plans to sell 7.5 million shares, representing 7.18% of CDSL’s stake, at a floor price of ₹1,672 each, totaling up to $151 million.

Management of Sale Process

JP Morgan India Private Limited is overseeing the sale process on behalf of Standard Chartered. Despite the lack of immediate response from a CDSL spokesperson, the divestment signals significant market activity.

Impressive Returns and Market Performance

CDSL has delivered remarkable returns to investors, with its stock surging by 90.25% over the past year. This notable performance has outpaced the Nifty Smallcap 250 index, which registered a 62.7% return during the same period.

Market Outlook and Valuation Analysis

The decision to exit the investment coincides with a positive outlook for Indian capital markets, attributed to the country’s robust economic potential and stable political and macroeconomic environment. However, a JM Financial report suggests that despite CDSL’s favorable market position, the stock is currently valued at 44x/40x FY25/26E P/E, indicating fair valuation levels.

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