Standard Chartered Bank is set to exit its investment in Central Depository Services (India) Ltd (CDSL) by selling its entire stake through a block deal. The bank will offload 7.5 million shares, representing a 7.18% stake in CDSL, according to a term sheet reviewed by Mint.
The total deal value is estimated to be up to $151 million. Standard Chartered is offering the shares at a floor price of ₹1,672 each, which is a discount of 6.5% from CDSL’s closing price of ₹1,788.90 on the NSE on Tuesday.
JP Morgan India Private Limited is reportedly managing the sale process for Standard Chartered. An email sent to a CDSL spokesperson wasn’t answered immediately.
The development comes at a time when CDSL has delivered impressive returns to its investors. Over the past year, the stock has surged by a whopping 90.25%, significantly outperforming the Nifty Smallcap 250 index, which has returned 62.7% over the same period.
Indian capital markets are well-positioned for growth due to the country’s strong economic potential and stable political and macroeconomic environment, which benefits CDSL, according to a JM Financial report from 7 February. “However, we believe the stock remains fairly valued at current valuations of 44x/40x FY25/26E P/E,” the report said.