Stocks

Catholic Syrian Bank makes a stellar market debut; soars 54%

Our Bureau Mumbai | Updated on December 04, 2019 Published on December 04, 2019

Meanwhile, the lender’s board extends the tenure of MD & CEO CVR Rajendran by 3 years

CSB Bank’s shares saw a bumper listing on the exchanges on Wednesday, debuting at a 53.9 per cent premium over the initial public offering issue price of ₹195 a share.

The stock closed at ₹300.1 apiece, up 9.13 per cent over the opening price of ₹275. Intra-day, the stock tested a high of ₹307 and a low of ₹275.

The IPO of CSB Bank (formerly Catholic Syrian Bank), which opened on November 22 and closed on November 26, was subscribed 87 times. The IPO received bids for 100.38 crore equity shares against its issue size of 1.15 crore shares (excluding the anchor book).

CSB Bank’s IPO comprised of a fresh issue of shares and an offer-for-sale (OFS) by the selling shareholders. The selling shareholders included HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, Federal Bank, Bridge India Fund, Satellite Multicomm Private Ltd, Way2Wealth Securities and ICICI Lombard General Insurance Company.

“Our bank expects that listing of the equity shares will enhance our visibility and brand image and provide liquidity to our shareholders. The listing will also provide a public market for the equity shares in India.

“Our bank will not receive any proceeds from the OFS and all the proceeds will be received by the selling shareholders, in proportion to the offered shares sold by the respective selling shareholders as part of the offer,” the bank said in its red herring prospectus.

The 98-year old Bank is one of the oldest private sector banks in the country, with a strong base in Kerala along with significant presence in Tamil Nadu, Karnataka and Maharashtra. The bank offers products and services through multiple channels, including 414 branches and 277 ATMs spread across 16 states and four union territories, and various alternate channels.

The promoter of CSB Bank is FIH Mauritius Investments, which is a wholly-owned subsidiary of Fairfax India Holdings Corporation

Meanwhile, the bank, in a stock exchange filing, said its board has appointed CVR Rajendran as the MD & CEO for another three years with effect from December 9, 2019, till December 8, 2022. This appointment is pursuant to the approval received from the RBI. Rajendran has been helming the bank since November 24, 2016.

 

Published on December 04, 2019
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