Kerala-based CSB Bank, formerly known as Catholic Syrian Bank, announced on Tuesday that its Rs 410 crore initial public offering (IPO) will open for subscription from 22 November till 26 November.
The CSB Bank shares will be available at a price band of Rs 193-195 apiece in a lot size of 75 shares and its multiples. Shares of the bank will be listed on both BSE and the National Stock Exchange (NSE).
The proposed IPO will see the lender raise fresh capital worth Rs 24 crore. Meanwhile, its existing shareholders, including ICICI Lombard General Insurance, HDFC Life Insurance, ICICI Prudential Life Insurance, Federal Bank, Bridge India Fund, Satellite Multicomm, Way2Wealth Securities and Edelweiss Tokio Life Insurance, will sell 19.78 million shares in the bank for Rs 385.71 crore via the offer-for-sale (OFS) route.
While 75% of the CSB Bank offer is kept aside for qualified institutional buyers (QIBs), 15% is reserved for non-institutional investors and 10% for retail investors. The book running lead managers for the issue are Axis Capital and IIFL Securities.
Proceeds from the fresh issue would be utilised towards “augmenting the bank’s tier-1 capital base to meet future capital requirements which are expected to arise out of growth in our bank’s assets, primarily our bank’s loans/advances and investment portfolio, and to ensure compliance with Basel III and other RBI guidelines”, CSB Bank had said earlier.
CSB Bank had filed the draft papers with the market regulator Securities and Exchange Board of India (Sebi) in August. It had previously filed for a Rs 400 crore IPO in 2015, too, and had obtained the regulator’s clearance to launch the issue, but did not go ahead with the plans then. This would be the first bank to get listed since August 2016 when RBL Bank got listed.
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