MUMBAI, (GNI): L-R: Salil Pitale (AXIS Bank Limited), P.V. Antony ( Head, IPO, CSB Bank Limited), C VR Rajendran ( Managing Director & Chief Executive Officer, CSB Bank Limited), Bharath Mani (Head- Retail Banking, CSB Bank Limited), Pinak R. Bhattacharyya ( IIFL Securities Limited) at the announcement of the Initial Public Offer (IPO) of CSB Bank Limited during the press conference in Mumbai – photo by Sumant Gajinkar
MUMBAI, (GNI): C VR Rajendran, Managing Director & Chief Executive Officer, CSB Bank Limited, at the announcement of the Initial Public Offer (IPO) of CSB Bank Limited in Mumbai – Photo by Sumant Gajinkar
CSB Bank Limited (Formerly known as The Catholic Syrian Bank Limited): Offer to open on November 22, 2019 and to close on November 26, 2019
Price Band – Rs. 193 – Rs. 195 per Equity Share of face value of Rs. 10 each
· The minimum Bid lot is 75 Equity Shares and in multiples of 75 Equity Shares thereafter
MUMBAI, 19th November, 2019, (GNI): CSB Bank Limited (the “Bank”) proposes to open its initial public offering (“IPO”) of equity shares of face value of Rs. 10 each (“Equity Shares”) on November 22, 2019. The Anchor Investor Bid/Offer Period shall be 1(one) Working Day prior to the Bid/Offer Opening Date which is November 21, 2019. The IPO consists of fresh issue aggregating up to Rs. 240 million (“Fresh Issue”) and an offer for sale of up to 19,778,298 equity shares by the Selling Shareholders, (“Offer For Sale” and together with the Fresh Issue referred to as the “Offer”). The Bid/Offer Closing Date will be on November 26, 2019. Bids can be made for a minimum lot of 75 Equity Shares and in multiples of 75 Equity Shares thereafter, announced by C VR Rajendran, MD & CEO, CSB Bank Ltd during the press conference in Mumbai.
The Equity Shares are proposed to be listed on the BSE Limited and the National Stock Exchange of India Limited (the “Stock Exchanges”).
The net proceeds from the Offer are proposed to be utilized to augment Tier-I capital base to meet Bank’s future capital requirements which are expected to arise out of growth in the Bank’s assets, primarily Bank’s loans/advances and investment portfolio and to ensure compliance with Basel III and other RBI guidelines. Further, the proceeds from the Offer will be used towards meeting the expenses of the Offer.
The Book Running Lead Managers (“BRLMs”) to the Offer are Axis Capital Limited and IIFL Securities Limited.
The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”). The Offer is being made through the book building process in accordance with Regulation 6(2) of the SEBI ICDR Regulations wherein at least 75% of the Offer shall be available for allocation on a proportionate basis to qualified institutional buyers (“QIBs”) (the “QIB Portion”), provided that the Bank, in consultation with the BRLMs may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. If at least 75% of the Offer cannot be allotted to QIBs, the entire application money shall be refunded forthwith.
Further, not more than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All Bidders, other than Anchor Investors, are mandatorily required to participate in the Offer through the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank accounts and UPI ID in case of RIIs, as applicable, which will be blocked by the Self Certified Syndicate Banks (“SCSBs”), as the case may be. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process.
The RHP shall be available on the websites of SEBI, BSE, NSE at www.sebi.gov.in, www.bseindia.com and www.nseindia.com, respectively, and is available on the websites of the BRLMs, i.e. Axis Capital Limited and IIFL Securities Limited at www.axiscapital.co.in and www.iiflcap.com, respectively.
CSB Bank Limited is one of the oldest private sector banks in India with a history of over 98 years and has a strong base in Kerala along with significant presence in Tamil Nadu, Karnataka, and Maharashtra. It offers a wide range of products and services to their overall customer base of 1.3 million as on September 30, 2019, with particular focus on SME, Retail, and NRI customers. It delivers products and services through multiple channels, including 412 branches (excluding three service branches and three asset recovery branches) and 290 ATMs spread across 16 states and four union territories as on September 30, 2019, and various alternate channels such as micro ATMs, debit cards, internet banking, mobile banking, point of sale services and UPI. Its focus on quality of service and nurturing long term relationship with its customers, has developed a well-recognized and trusted brand in south India, particularly in the states of Kerala and Tamil Nadu. The Bank has four principal business areas, namely, (a) SME banking, (b) retail banking, (c) wholesale banking, and (d) treasury operations.
All capitalized terms used herein and not defined shall have the same meaning ascribed to it in the RHP.ends
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