CSB Bank's IPO subscribed 1.97 times on second day of bidding; share sale to close tomorrow

Kerala-based CSB Bank’s maiden offering has been subscribed 1.97 times till Monday afternoon, the second day of bidding, according to a media report.

Private sector CSB Bank’s initial public offering (IPO) continued to receive strong demand from retail investors after their reserved portion was oversubscribed 10.41 times, according to Moneycontrol citing data on the exchanges.

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

The public offer has received bids for 2.24 crore equity shares against its IPO size of 1.15 crore shares, excluding the anchor book.

The portion for non-institutional investors was subscribed 30 percent and that of qualified institutional buyers by a percent, the report said.

The share sale will close on Tuesday.

On Friday, the CSB Bank’s IPO was  launched and it was fully subscribed on the first day of the bidding itself, with robust response coming in from retail investors.

The IPO received bids for 1,20,87,450 shares against the total issue size of 1,15,54,987 shares, reflecting 1.05 times subscription, according to data available with the National Stock Exchange.

The category reserved for non-institutional investors was subscribed 10 percent, while that for retail investors was subscribed 5.60 times.

According to a regulatory filing, CSB Bank 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.

The IPO comprises a fresh issue of Rs 24 crore and an offer-for-sale of 1,97,78,298 equity shares, including an anchor portion of 94,54,080 equity shares.

On 21 November, CSB had raised Rs 184 crore from anchor investors. The private sector lender, which aims to raise up to Rs 410 crore, has fixed a price of Rs 193-195 per share for the IPO.

Axis Capital and IIFL Securities are managing the offer.

— With PTI inputs