Central Depository Services (India) Ltd (CDSL) witnessed a significant decline in its share price, plummeting over 6% during Wednesday’s session. This downturn follows reports indicating Standard Chartered Bank’s intention to divest its entire ownership in CDSL through a block deal.
According to a term sheet scrutinized by Mint, Standard Chartered Bank plans to offload 7.5 million shares, equivalent to 7.18% of its stake in CDSL. The bank’s decision to exit its investment has triggered market speculation and contributed to the downward trend in CDSL’s stock price.
On the National Stock Exchange (NSE), CDSL’s share price commenced at ₹1,718.55 apiece today, reflecting the impact of the impending block deal. Analysts suggest that the market response to Standard Chartered’s sell-off could exert further pressure on CDSL’s valuation in the short term.
The deal, estimated to be valued at up to $151 million, highlights Standard Chartered’s strategic move to liquidate its position in CDSL. The shares are set to be sold at a floor price of ₹1,672 each, representing a 6.5% discount from CDSL’s closing price of ₹1,788.90 on Tuesday’s trading session on the NSE.
Investors and market observers are closely monitoring the developments surrounding Standard Chartered’s exit from CDSL, anticipating potential ramifications on the company’s share price dynamics and overall market sentiment. The transaction underscores the fluidity of investment strategies in the financial landscape, with stakeholders bracing for potential fluctuations in CDSL’s market performance amidst the impending divestment.
