CSB Bank IPO subscribed more than 4 times on day 2 amid strong demand demand from retail investors

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Published: November 25, 2019 5:12:25 PM

CSB Bank IPO continued to see strong demand from retail investors on the second day of the issue, after getting fully subscribed on Friday.

Bank IPO, CSB Bank, CSB Bank IPO, initial public offering, Catholic Syrian BankThe bank has priced the sale of shares at Rs 193-195 per piece and the issue will be open between November 22-26.

CSB Bank IPO continued to see strong demand from retail investors on the second day of the issue, after getting fully subscribed on Friday. The issue received bids for a total of 4.76 crore shares as against the issue size of 1.15 crore implying, implying total subscription of 4.28 times. Retail investors bid for a total of 4.5 crore shares as against the 20.29 lakh shares reserved for them, implying a demand of more than 20 times. The non-institutional investors (NII) portion was subscribed about 84% of the portion reserved for them. The QIBs bid for a total of 15.80 lakh shares, as against the 63 lakh shares reserved in this category, implying a subscription of 25%.

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Formerly known the Catholic Syrian Bank, the Kerala-based private sector lender looks to raise up to Rs 410 crore from its public issue. CSB Bank’s IPO is being carried out to meet RBI’s reglulation with regard to listing. The public offer contains a fresh issue of shares to raise up to Rs 24 crore, and an offer for sale (OFS) of 1.97 crore shares by existing investors through which it will sell Rs 385 crore worth shares.

CSB Bank IPO, which opened on November 22 will remain open till tomorrow. CSB Bank has fixed the price band as Rs 193- Rs 195 per share. Investors can pick up shares in lots of 75 equity shares, and in multiples of 75 equity shares thereafter, implying the minimum bid lot. The bank is set to  finalise basis of allotment on December 2 and will credit equity shares to shareholders’ DP accounts on December 3, Axis Capital said in its note.

Taking stock of the prospects of the public offer, brokerage firm Motial Oswal has a subscribe rating. “At the upper price band, the issue is valued at 2.4x P/B on 1HFY20 post issue diluted basis. Post the acquisition by Fairfax group, the realigned operational strategy has helped the company to report profits in 1HFY20. The company is focused to improve profitability and growth going ahead. We believe that given the strong promoter backing and turnaround in profitability, investor can Subscribe to the IPO for listing gains,” Motilal Oswal said in a report.

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