INSUBCONTINENT EXCLUSIVE:
CSB Bank plans to raise up to Rs 410 crore to expand its Tier-I capital.Kerala-based private sector lender CSB Bank (Catholic Syrian Bank)
will launch its initial public offering (IPO) for subscription on November 22
The public offering will be open for subscription for five days from November 22 to November 26, although the offer period for anchor
investor would be one day prior to the IPO opening i.e
The shares will be allotted on December 2, 2019 and listed on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on December
BandThe price band of CSB Bank public offer has been fixed at Rs 193 to Rs 195 per share
An investor can apply for a minimum of 75 shares and multiples thereafter, according to an Emkay report.CSB Bank Issue SizeCSB Bank plans to
raise up to Rs 410 crore to expand its Tier-I capital
The CSB Bank IPO comprises a fresh issue of shares worth Rs 24 crore and an offer for sale (OFS) of 1.97 crore shares worth Rs 385 crore by
existing investors, according to the report.A total of 75 per cent of the offer is kept aside for qualified institutional buyers (QIBs), 15
per cent is reserved for non-institutional investors and 10 per cent for retail investors
Following the fresh issue of shares, promoter entity Fairfax India Holdings' stake in CSB Bank will fall to 49.73 per cent from the current
The bank's promoter has five years to reduce its holding to 40 per cent and 15 years to go down to 15 per cent in compliance with RBI
requirements.Should you invest in CSB Bank?According to the report, CSB Bank has done reasonably well in its first phase of transformation
over the past 2-3 years, reducing the influence of unions/a religious institution, rationalizing branches/employees and turning it from a
capital-starved bank into a capital-excess bank after on-boarding investor-cum-promoter Fairfax."We believe that the second phase of
transformational journey to take the bank to new growth phase will be challenging, particularly given current stressed scenario and rising
competitive intensity, where even established (Federal Bank) and promising banks (RBL) have slipped," Emkay said in its pre-IPO report.Get
Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
