CSB Bank IPO fully subscribed on opening day

By: |
November 23, 2019 12:26 AM

Earlier, the Kerala-based lender raised Rs 184 crore from 24 anchor investors at a price of Rs 195 per share, according to an exchange filing.

The institutional investor category was yet to receive any bids, according to data available till 5 pm on November 22.The institutional investor category was yet to receive any bids, according to data available till 5 pm on November 22.

Led by strong retail investor participation, CSB Bank’s Rs 410-crore initial public offering (IPO) was fully subscribed on Day 1, with the offer receiving bids amounting to 1.20 crore equity shares against the 1.15 crore shares put on offer.

According to data from exchanges, retail investor category received bids amounting to 5.6 times the offered quantity, while non-institutional investor category received bids at just 0.10 times. The institutional investor category was yet to receive any bids, according to data available till 5 pm on November 22.

Earlier, the Kerala-based lender raised Rs 184 crore from 24 anchor investors at a price of Rs 195 per share, according to an exchange filing. Omers Administration Corporation, ICICI Prudential AMC, SBI Mutual Fund, Axis Mutual Fund and Sundaram Mutual Fund were a few of the anchor investors.

The bank’s asset quality has been improving with its gross non-performing assets (NPA) falling to 2.86% as on September 30, 2019 as against 4.87% as on the end of March this year. Its total advances as on September 2019 amounted to Rs 1,129 crore, which by large has been towards gold loans and small to midsize enterprises (SMEs) amounting to 33.17% and 29.47% of its total loan book.

According to HDFC Securities, CSB Bank has improved its growth by focusing on better yield loan products with low risk. “Therefore, the surplus funds parked in investments were re-deployed to advances with particular focus on gold loans and corporate advances to entities with high credit ratings which have low risk weights to minimize capital consumption,” the report indicated.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Private investment to trickle in once capacity utilisation goes beyond 75 pc: Uday Kotak
2Sensex, Nifty turn negative for 2021; will bear attack continue till budget? Here’s what experts say
3TCS 3rd most-valued IT services brand globally, closes gap behind IBM: Brand Finance