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![Shares of Central Depository Services Limited (CDSL) fell 2.8 per cent to Rs 2,368 per share on the NSE in intraday trade on Tuesday. This came after the company recommended the issuance of bonus shares. Shares of Central Depository Services Limited (CDSL) fell 2.8 per cent to Rs 2,368 per share on the NSE in intraday trade on Tuesday. This came after the company recommended the issuance of bonus shares.](https://images.news18.com/ibnlive/uploads/2021/07/1627283897_news18_logo-1200x800.jpg?impolicy=website&width=510&height=383)
Shares of Central Depository Services Limited (CDSL) fell 2.8 per cent to Rs 2,368 per share on the NSE in intraday trade on Tuesday. This came after the company recommended the issuance of bonus shares.
The Board of Directors of Central Depository Services (India) Ltd. has approved the issuance of one bonus share for each share held.
The board of directors of Central Depository Services (India) Ltd. on Tuesday (July 2) approved issuance of one bonus share for each share held by the board, the company said in a stock exchange filing.
According to CDSL, the company will issue 10,45,00,000 bonus shares of face value Rs 10 each, raising a total of Rs 104.5 crore.
Shares of Central Depository Services Limited (CDSL) fell 2.8 per cent to Rs 2,368 per share on the NSE in intraday trade on Tuesday.
A 1:1 bonus issue effectively doubles the number of shares outstanding. As a result, the stock price adjusts downward to approximately half of its pre-bonus level, assuming all other factors remain constant. This adjustment is due to an increase in the supply of shares without a corresponding increase in the overall value of the company.
The company said in a stock exchange filing on Monday that the share capital of the company will increase to Rs 20.9 billion after the bonus share issue.
The issuance of these bonus shares is expected to be completed within two months from the date of Board approval, i.e. on or before September 1, 2024.
In addition to the bonus share issue, the company's board of directors has also approved increasing the authorised share capital from Rs 15 billion (divided into 1.5 billion equity shares of Rs 10 each) to Rs 30 billion (divided into 3 billion equity shares of Rs 10 each).
In Q4FY24, CDSL reported a consolidated net profit of Rs 129.25 crore, a significant increase from Rs 63.12 crore in Q4FY23. Operating income also showed a significant surge, growing 93% to Rs 240.78 crore in the same quarter.
The company has a total market capitalization of Rs 25,239 crore and its current price-to-earnings ratio is 60.57 times.
At 2:35 pm, the company's shares were down 0.93 per cent at Rs 2,415.25 per share on the NSE. In comparison, the NSE Nifty50 was down 0.03 per cent at 24,133.40 levels.
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