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CSB Bank share closes 54% higher over issue price on listing day

Earlier in the day, CSB Bank share opened 41% higher at Rs 275 on BSE compared to its issue price of Rs 195

twitter-logo BusinessToday.In        Last Updated: December 4, 2019  | 17:56 IST
CSB Bank share closes 54% higher over issue price on market debut
Share of CSB Bank pared some gains to close 53.90% or 105.10 points higher at Rs 300.10 on BSE

Share price of Chennai-based CSB Bank closed 9.13% higher today led by strong investor interest during its market debut. CSB Bank share opened 41% higher at Rs 275 on BSE compared to its issue price of Rs 195.  Later, the stock extended gains to hit an intra day high of Rs 307, rising 57% above its issue price. Share of CSB Bank pared some gains to close 53.90% or 105.10 points higher at Rs 300.10 on BSE. Compared to the opening price, the share ended higher by 9.13% or 25.10 points to Rs 300.10. Its market capitalisation stood at Rs 5,205 crore on BSE.

Also read: CSB Bank IPO subscribed 7.31 times on day 3

On the first day of trade, CSB Bank saw 40.27 lakh shares changing hands amounting to turnover of Rs 118.82 crore on BSE. Similarly on NSE, the stock closed 54.03% or 105 points higher than its issue price. Compared to the opening price of Rs 275, the stock gained 9.21% on the benchmark index.

The IPO of the bank was held from November 22 to November 26. The IPO was subscribed 87 times on the final day. The portion meant for non-institutional investors was subscribed 164.68 times. Qualified institutional buyers and retail investors put in bids for 62.18 times and 44.53 times against the portion of shares allocated for them.

The lender offered to sell 2.10 crore shares of Rs 10 during the IPO. While 12.43 lakh shares amounting to Rs 24 crore were part of the fresh issue, 1.98 crore shares of Rs 10 were sold under the offer for sale (OFS) route. The lender which was formerly known as Catholic  Syrian Bank had roped in Axis Capital and IIFL Securities as lead managers of the issue.

CSB Bank raised Rs 184 crore from anchor investors. It finalised the allocation of 94,54,080 shares at Rs 195 apiece to 24 anchor investors, including five mutual funds. Based on the price, the total proceeds would be little over Rs 184 crore.

Meanwhile, in a communication to bourses, the lender said CVR Rajendran has been appointed as the managing director and CEO for another three years till December 8, 2022.  His current term will end on December 9 this year.

By Aseem Thapliyal

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