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CDSL shares showing 48% correction on NSE today, here’s why

CDSL shares showing 48% correction on NSE today, here's why
CDSL shares showing 48% correction on NSE today, here's why 2
  • CDSL Share Price Movement:
    • CDSL shares closed at Rs 2,898.10 yesterday.
    • Today, they opened at Rs 1,500, showing a 48.24% drop on NSE.
    • The stock price nearly halved because it started trading ex-bonus (bonus shares issued).
  • Bonus Issue Details:
    • The bonus issue is in a 1:1 ratio, meaning one free share for every share held.
    • August 24 is the record date for determining eligible shareholders.
    • After the bonus issue, the number of shares will double, reducing the stock price by nearly half.
    • The market capitalization of CDSL will remain unchanged by this bonus issue.
  • Bonus Shares Issued:
    • CDSL will issue 10,450,000 new equity shares with a face value of Rs 10 each.
    • This totals Rs 104.5 crore, coming from the company’s free reserves.
    • The bonus issue will increase the company’s share capital to Rs 209 crore.
  • Company Announcements:
    • The bonus issue was announced in July 2024.
    • The shares will be issued within two months from board approval, by September 1, 2024.
    • The board also approved increasing the authorized share capital from Rs 150 crore to Rs 300 crore.
  • Recent Stock Activity:
    • 44.85 lakh shares were traded today, with a turnover of Rs 679.25 crore.
    • The stock has a beta of 0.9, indicating low volatility.
  • Technical Indicators:
    • The Relative Strength Index (RSI) is 75.2, suggesting the stock is overbought.
  • Financial Performance:
    • CDSL reported an 82% increase in net profit for Q1 June 2024, reaching Rs 134.20 crore.
    • Revenue surged by 72% to Rs 257.38 crore compared to the same quarter last year.
  • About CDSL:
    • Central Depository Services (India) Ltd is a SEBI-registered depository.
    • It aims to provide a secure, convenient, and affordable depository service to market participants.
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