Kerala-based CSB Bank has launched its initial public offer (IPO) today. The private sector lender plans to raise Rs 410 crore through the offer at the upper end of the price band by issuing fresh equity shares and offer for sale of shares by existing shareholders. Price band for CSB Bank IPO has been fixed at Rs 193-195 per share. The issue close closes on November 26.
The lender which was formerly known as Catholic Syrian Bank will issue 2.10 crore shares of Rs 10. Of the total issue size 12.43 lakh shares amounting to Rs 24 crore will be part of the fresh issue. 1.98 crore shares of Rs 10 will be sold under the offer for sale (OFS) category. Axis Capital and IIFL Securities are the lead managers to the issue. CSB Bank shares will be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Here's a look at five things to know before you invest in the CSB Bank IPO.
- One can apply for shares in a lot size of 75 shares. 10 percent of the issue portion has been allocated for retail investors.
- The bank posted a net loss of Rs 197.4 crore for the financial year 2018-19. However, for the six month period ended September 30, 2019, the bank's net profit after tax was Rs 44.27 crore. For fiscal ended March 31, 2019, the private sector lender's total advances stood at Rs 10,615 crore, while it had a deposit base of Rs 15,214 crore. It posted a net loss of Rs 65.68 crore for the March 2019 fiscal. In the previous fiscal, the lender posted loss of Rs 127 crore.
- On the asset front, the bank's non-performing assets (NPAs) stood at Rs 240.68 crore for the financial year 2019, which represented 2.27 per cent of its net advances. The gross NPAs represented 4.87 per cent of total advances as on March 31, 2019.
- On Thursday, the bank raised Rs 184 crore from anchor investors. CSB Bank has 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. Omers Administration Corporation OAC Custody Account (SCV6), ICICI Prudential MF, SBI MF, Aditya Birla Sun Life Trustee, Axis MF, Sundaram MF, HSBC and Ashoka India Opportunities Fund are among the anchor investors.
- Allotment for the IPO would be made on December 2, 2019. Shares of the bank will be listed on bourses on December 4.