CDSL shares continue to rise as record date for 1:1 bonus issue approaches, stock gains over 25% in six trading days

CDSL indicated in an exchange filing that its shareholders have approved the issuance of bonus shares in the ratio of 1:1 and the record date is August 24.

A bonus issue increases the company’s outstanding number of shares without changing its market capitalisation. A firm may decide to issue bonus shares as a way of rewarding shareholders instead of paying dividends.

The firm indicated in an exchange filing it would be issuing over 10.45 crore bonus shares which will be done from capitalisation of free reserves including general reserves and retained earnings of the company.

During the first quarter of fiscal year 2025, the firm reported an 82% year-on-year (YoY) rise in its consolidated net profit at ₹134 crore while total income rose 65% YoY to ₹287 crore.

The company claimed that it became the first depository to register over 12.5 crore demat accounts as on June 30, 2024. During the first quarter of this fiscal, the firm opened 99 lakh new demat accounts.

Nehal Vora, MD & CEO of CDSL said that India's capital markets have experienced growth, benefiting from shifting investor preferences toward capital market investments. “CDSL’s performance in this quarter is a consequential result of these market dynamics,” he added.

CDSL facilitates electronic holding and transaction of securities and facilitates settlement of trades on stock exchanges. It provides services to a broad spectrum of the capital market entities, including depository participants, issuers, investors, RTAs, clearing corporations, exchanges. CDSL has partnered with more than 570 depository participants and operates across 98% of pin-codes in India.

Shares of the company rose over 57% since the beginning of the year. The stock has gained over 148% in the last one year.