Suddenly there was a rush to buy this stock, one announcement and the stock rocketed!

The stock market witnessed fluctuations on the first day of the week and when the market closed, Sensex closed in red and Nifty-50 closed in green. But, meanwhile, the stock of Central Depository Services Limited ran at a stormy pace and jumped up to 6 percent during trading. The reason behind this strong rise in the stock is an announcement made by the company. Let’s know about it…

CDSL share opened on the green mark on Monday and started trading at the level of Rs 2855, but within a short time of trading it jumped by 6 percent and reached an all-time high level of Rs 2955. However, this initial rise reduced by the end of trading in the market. At the close of the market, CDSL share closed at Rs 2883 with a gain of 3.40 percent.

Due to the strong rise in the company’s stock, the market cap of CDSL has also increased to Rs 30130 crore. This sudden rise in this stock has been seen after a news from the company. Actually, the board of Central Depository Services shared the information in the stock exchange filing that investors will be given one share in bonus. With its approval, the record date for bonus shares has been fixed as 24 August. The effect of this news has been seen in the form of a strong rise on the company’s stock.

If we look at the performance of CDSL shares in the last one year, it has proved to be a profitable deal for its investors. This CDSL Stock has given a return of more than 150 percent in a year. Last year on August 21, 2023, the price of one share of the company was Rs 1150.35, which reached the level of Rs 2955 on Monday, August 19. This stock has given a return of 56 percent in the last six months, while the share price has increased by more than 26 percent in just one month.

In the meeting of the board of CDSL in July 2024, the company had approved the proposal to issue one bonus share for one share for the first time and now its record date has been fixed. Let us tell you, companies issue bonus shares using their free reserves and this increases the earnings per share i.e. EPS as well as paid-up capital. CDSL company was established in the year 1999, which deposits securities with itself in electric form. This is the first company to register 10 crore Demat Accounts.

(Note- Before making any kind of investment in the stock market, please take advice from your market experts.)