CSB Bank IPO subscribed 87 times on final day1 min read . Updated: 27 Nov 2019, 08:31 AM IST
- Gold loans constitute a major portion of CSB Bank's advances
- CSB Bank swung to profit in the first half of the fiscal
The initial public offering of CSB Bank was subscribed a whopping 87 times on the final day of bidding on Tuesday. The initial public offering (IPO) of the Kerala-based company received bids for over 100 crore shares against the total issue size of 1.15 crore shares. The category reserved for qualified institutional buyers (QIBs) was subscribed 62.18 times, non institutional investors 164.68 times and retail individual investors 44.25 times, according to merchant banking sources.
The IPO comprises a fresh issue of ₹24 crore and an offer-for-sale of 1,97,78,298 equity shares, including an anchor portion of 94,54,080 equity shares.
CSB Bank on Thursday raised ₹184 crore from anchor investors.
75 equity shares and in multiples of 75 thereafter.
Link Intime India Private Limited is the registrar to the offer.
Allotment and Listing - tentative dates
CSB Bank shares will be listed on both BSE and NSE. The tentative date for share allotment finalisation is likely to be December 02, 2019 and listing date December 4, 2019, according to brokerages.
CSB Bank IPO comprises a fresh issue of ₹24 crore and an offer-for-sale of 1,97,78,298 equity shares, including an anchor portion of 94,54,080 equity shares.
Post IPO, the holding of its promoter entity, Fairfax India Holdings Corporation, will go down to 49.73% from the present 50.09%. According to RBI regulations, the promoter has to reduce stake to 40% in five years, 30% in 10 years and 15% in 15 years.
As on September 30, 2019, CSB Bank had a network of 412 branches. Gold loans constituted a major portion of CSB’s advances, contributing 33.17% of its total advances as on September 30, 2019, respectively, according to brokerages.
The bank has returned to black with a profit of ₹44 crore for the first half of this fiscal. Its gross NPAs decreased to 4.87% as of March 31, 2019 from 7.25% as of March 31, 2017. The net NPAs decreased to 2.27% as of March 31, 2019 from 4.12% as of March 31, 2017.
"While CSB Bank has a long operating history as a traditional bank, it is currently focusing on implementation of strategic changes in its business model to function efficiently as a full service new age private sector bank backed by its new marquee investor, Canadian billionaire Prem Watsa's Fairfax India Holdings Corporation," HDFC Securities said in a note. (With Agency Inputs)