LIC IPO to boost this share price into four digits soon, says Market Guru Anil Singhvi

Mid-cap Picks With Anil Singhvi: Zee Business Managing Editor Anil Singhvi has time and again unveiled stocks that have strong fundamentals and a growth-oriented business model. In this regard today, the Market Guru named CDSL. The company was in the news for having added around 1 crore Demat Accounts in the last one year. Singhvi said that the trend is expected to continue as the Modi Government plans to add around 1 crore Demat Account though the LIC IPO launch. He said that such a robust rise in the number of Demat Accounts at the CDSL has led to rise in its share price. CDSL share price today closed at Rs 571 — 6.12 per cent up from its previous close.

Speaking on how LIC IPO will boost CDSL share price, Zee Business Managing Editor said, "Modi Government is planning to open 1 crore Demat Account for the LIC IPO launch. Since CDSL is around 30 per cent cheaper than the NSDL, CDSL is expected to grab most of this opportunity. So, the business model of the CDSL is expected to remain intact for the coming period as various IPOs are also expected to get listed on BSE and NSE."

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On the current fundamentals of CDSL, Anil Singhvi said, "In January 2020, CDSL had 3.96 crore Demat Accounts, which have become 5.20 crore in the corresponding period. Government is all set to reserve 10 per cent shares of the LIC IPO for LIC Policy holders (25 crore). Those who who don't have a Demat Account would have to open one to monetise the benefit." 

He said that if the Modi Government goes with the speculation and reserves 10 per cent of the LIC shares, CDSL is expected to emerge a big beneficiary of this move.

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CDSL में क्यों है आज शानदार तेजी?

जानिए CDSL के लिए आगे क्या हैं ट्रिगर?@AnilSinghvi_ @AshishZBiz pic.twitter.com/hCS7SbC50J

— Zee Business (@ZeeBusiness) February 15, 2021

CDSL has been adding around 10 lakh Demat Accounts per month that reflects the growing strength of the company. On the possible reason for such rise in Demat Account and business volume of the company, Singhvi said, "People have now started to invest in the financial markets and Modi Government is quite proactive in this regard. Reserving 10 per cent shares for the LIC Policy holders should be seen from this angle too. So, growing number of investors in the financial market are expected to continue in the next year too and hence I am expecting the CDSL share price to rise further and hit four-digit number in the near future." 

Singhvi said that those who have CDSL shares in their portfolio should remain invested in the stock as it will soon hit Rs 800 to Rs 1,000 mark.