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CSB Bank mops up Rs 184 cr from anchor investors

Nov 21, 2019, 21:40 IST
PTI
New Delhi, Nov 21 () Kerala-based lender CSB Bank on Thursday raised Rs 184 crore from anchor investors, ahead of its initial share sale commencing on Friday.

CSB Bank, which aims to raise up to Rs 410 crore, has fixed a price of Rs 193-195 per share for the initial public offer.

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According to a regulatory filing, 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.

The shares are being sold to anchor investors at the upper end of the IPO price band of Rs 195 apiece.

CSB Bank's offer involves a fresh issue of shares to raise up to Rs 24 crore and an Offer For Sale of 1.97 crore scrips by existing investors. The latter would be worth around Rs 385 crore.

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The share sale would be open from November 22 to 26.

On November 19, the bank's Managing Director and Chief Executive C V R Rajendran said its promoter entity Fairfax India Holdings Corporation's stake would go down to 49.73 per cent from 50.09 per cent.

The promoter entity, which acquired 51 per cent in the bank in February, has five years to reduce holding to 40 per cent and 15 years to go down to 15 per cent in compliance with the RBI requirements.

As part of the same requirements, it had to list by September 2019 and some procedural aspects resulted in a marginal delay, he had said. RAM BAL

(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)
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