CSB Bank IPO opens today: Key things to know

Kerala-based CSB Bank, formerly known as Catholic Syrian Bank, has announced the details of its Rs 410 crore initial public offering. The CSB Bank IPO comprises a fresh equity issue and an offer for sale of existing investors. CSB Bank, one of the oldest private sector banks in India with a history of over 98 years, is backed by Fairfax India Holdings through FIH Mauritius Investments. As on September 30, the bank has 412 branches and serves 1.3 million customers.

Here are the key details about the CSB Bank IPO:

The CSB Bank IPO will open for subscription on November and will close on November 26. The IPO has a price band of Rs 193-Rs 195 per share, with an aim to raise Rs 409.68 crore at the higher end of the price range.

* The bid lot: 75 shares and in multiple thereof

* The CSB Bank IPO comprises a fresh issue of shares of face value Rs 10 each with an aim to raise Rs 24 crore and an offer for sale (OFS) of 1.97 crore shares worth Rs 385 crore by existing investors.

* Following the fresh issue of shares, promoter entity Fairfax India Holdings' stake in CSB Bank will fall to 49.73 percent from the present 50.09 percent. The promoter, which acquired 51 percent in CSB Bank in February 2019, has five years to reduce holding to 40 percent and 15 years to go down to 15 percent in compliance with RBI requirements.

* Managing director and chief executive CVR Rajendran said three insurance companies HDFC Standard Life, Reliance Nippon Life Insurance and ICICI Prudential are exiting their collective stake of around 6 percent, while Federal Bank is also exiting by selling a residual 1.68 percent stake, reported PTI .

* Bridge India Fund, Satellite Multicomm, Way2Wealth Securities, ICICI Lombard and Edelweiss Tokio Life Insurance are among the shareholders selling their stakes in the IPO.

* CSB Bank plans to utilise the IPO proceeds towards increasing its Tier-I capital base to meet future capital requirements and for general corporate purposes.

* The market cap of the bank would be Rs 3,348 – 3,382 crore post IPO.

* CSB has a strong base in Kerala along with a significant presence in Tamil Nadu, Karnataka, and Maharashtra. As on September 30, the bank has 412 branches and serves 1.3 million customers.

* As of September 30, the advances were Rs 11,297.8 and the yield on advances was 10.22 percent. The gross NPAs was 2.86 percent and the net NPAs was 1.96. The total NPA provisioning was Rs 55.63 crore and total write-offs were Rs 214.88 crore, together amounting for ₹ 270.51 crore.

* The non-interest income was Rs 84.42 crore, however, excluding profit on sale of investments the non-interest income was Rs 71.46 crore and the cost to income ratio is 71.54 percent as of September 30.

* Axis Capital and IIFL Securities are the book-running manager for the CSB Bank IPO. Link Intime India is the registrar.

* The stock will be listed on the BSE and the NSE.