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CSB Bank Makes A Stellar Debut; Lists At 41% Premium

The public issue was subscribed by a whopping 87 times

Kerala-based private sector lender CSB Bank had a bumper listing this morning. The stock debuted on the Bombay Stock Exchange at Rs 275, which is a premium of 41 per cent over the issue price of Rs 195. At 11 am, the stock was trading at Rs 298, up 53 percent over issue price.

The Rs 410-crore IPO was opened for subscription between November 22 and 26, and was priced in a band of Rs 193-195 per share. It involved a fresh issue of shares to raise up to Rs 24 crore and an offer for sale of 1.97 crore shares by existing investors. The public issue was subscribed by a whopping 87 times; the retail individual investors category was subscribed 44.25 times, qualified institutional buyers (QIBs) was subscribed 62.18 times and non-institutional investors 164.68 times.

CSB Bank is one of the oldest private sector banks in India with a history of over 98 years. It has a strong base in Kerala and a significant presence in Tamil Nadu and Karnataka. CSB has a network of more than 412 branches excluding 3 service and 3 asset recovery branches and 290 ATMs across India.

Post the IPO, the holding of its promoter entity, Fairfax India Holdings Corporation will go down to 49.73% from the present 50.09%.

Among the other strong debutants this year, IRCTC had listed at a 101 per cent at Rs 644 and Affle India had listed at a 24.82 per cent premium at Rs 929 against its issue price of Rs 745 per share.

In the meantime, the BSE Sensex has rebounded more than 200 poiojts from intraday lows and is trading at 40,713, up 38 points.

Source: NDTV Profit