Shares of Central Depository Services Ltd (CDSL) dropped on Wednesday following reports of a significant block deal.
What Happened: Standard Chartered Bank sold its entire shareholding in the company, triggering the market reaction, according to multiple media reports.
Investment bank JPMorgan reportedly issued a term sheet for the block deal, indicating Standard Chartered Bank’s offer to sell its complete 7.18% stake at a floor price of ₹1,672 per share, which is 6.5% lower than the stock’s last closing price.
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The deal size is estimated to be around ₹1,250 crore at the floor price, pending confirmation from exchanges when block deal data is released later in the evening.
Established in 1999 by the Bombay Stock Exchange (BSE) in collaboration with banks like State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank and Union Bank of India, CDSL serves as a depository, facilitating the electronic holding of securities.
It operates alongside National Securities Depository Ltd, promoted by the National Stock Exchange, as one of the two depositories in India.
Price Action: CDSL’s share price was down 4.45% at ₹1,709.30 around noon on Wednesday.
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