Central Depository Services to Issue Bonus Shares, Stock Surges to Record High

Central Depository Services (India) Ltd (CDSL) has announced that it will convene a board meeting on July 2 to discuss the issuance of bonus shares to its shareholders. This move comes as the company aims to capitalize on its free reserves and enhance shareholder value.

If approved, this will mark the first time that CDSL will be issuing bonus shares, a significant development for the renowned depository service provider. The proposal is subject to the approval of the company’s shareholders.

CDSL is one of India’s leading depositories, alongside National Securities Depository Ltd. (NSDL), offering electronic storage and exchange of assets, as well as trade settlement services through demat accounts. Over the years, CDSL has garnered support from major institutions such as the Bombay Stock Exchange, State Bank of India, and Bank of India.

In November last year, CDSL achieved a milestone by registering over 10 crore demat accounts, solidifying its position as a key player in the market. The company’s revenue streams include transaction charges, settlement charges, and account maintenance fees paid by participants.

Since its listing in the secondary market in 2017, CDSL has consistently delivered strong performance and impressive returns to investors. The potential issuance of bonus shares has sparked investor interest, leading to a surge in the company’s stock price.

The stock price of CDSL soared by 13% during intraday trading to reach a record high of ₹2,260 per share. This uptrend reflects investor optimism regarding the company’s growth prospects and the value addition that bonus shares could bring.