NEW DELHI: Central Depository Services (India) ( CDSL ) on Friday made a stellar debut on NSE, as the scrip got listed at Rs 250, a premium of 67.79 per cent over its issue price of Rs 149 apiece.At 10.02 am, the scrip was trading 79 per cent higher at Rs 266 on the exchange.CDSL’s IPO received a spectacular 170-times oversubscription last week, eclipsing solid responses to the issues of D-Mart Hudco and S Chand The Rs 3.51 crore share issue, which was sold during June 19-21, was subscribed 170.19 times, with the qualified institutional buyers (QIBs) portion getting 148.71 times oversubscription, while non-institutional investors and retail investors categories received bids 563.03 times and 23.83 times, respectively, of their respective quotas.It has been seen that IPOs that have received over 100 per cent subscription from non-institutional investor (NII) or HNI category have offered better rewards to investors at least on the listing day, with eight of the 39 such issues doubling investor wealth in debut trade in last one decade.High net-worth individuals (HNIs), who borrowed to invest in the initial public offering of the BSE-promoted CDSL, need the stock to list at a 65-76 per cent premium above its issue price of Rs 149 per share in order to be able to make decent profit.With funds borrowed at interest rate of 6-7 per cent for seven days, the total cost for HNIs came up to Rs 246-262 per share, a broker told the ET. HNI's had borrowed funds amounting to Rs 43,000 crore to bid for CDSL's shares in the IPO. Based on the grey market premium, brokers had expected the stock to list at Rs 234239 per share.Data showed that Everonn Systems India, whose issue was subscribed 277 times by HNIs – 131.47 times in total - saw its shares rising nearly a record 242 per cent on the listing day in August 2007 , which was later eclipsed by 286 per cent listing windfall on Burnpur Cement in January 2008.Religare Enterprises’ shares had rallied 182 per cent on its debut in November 2007 after the issue got 215 times subscription by HNI category.Vishal Retail, Nitin Fire Protection and MIC Electronics saw surge of 178 per cent, 155 per cent and 124 per cent, respectively, on their listing days. Mundra Port (2007) and Career Point Infosystems (2010) too had witnessed over 100 per cent return on their market debut. Most of these issues were driven was a broad-based euphoria in 2007 that burst in 2008.

Source: Economic Times June 30, 2017 04:22 UTC