CSB-Bank-IPO

CSB Bank Files Draft Prospectus For IPO to Raise Rs 400 Cr

CSB Bank, formally known as Catholic Syrian Bank has filed for an initial public offer which aims to raise about Rs 400 crore. CSB Bank IPO is the next upcoming IPO and expected to hit the market in the year 2019 or 2020.

CSB Bank which is promoted by Canadian billionaire Prem Watsa plans to raise Rs 30 crore by issuing fresh equity shares and Rs 37 crore from an offer for sale.

“The issue will be a combination of fresh equity as well as an offer for sale from existing investors who have been shareholders for years and did not have a chance to exit before this,” said a person involved in the deal.

“We expect the okay from the Securities and Exchange Board of India in the next couple of months.”

Last year, Watsa’s Fairfax India Holdings Corp. received special approval from the Reserve Bank of India to take a majority stake in the Thrissur, Kerala-based CSB Bank. A public listing was one of the conditions for Watsa to take a controlling stake.

Local investment banks IIFL and Axis Capital are helping the bank go public. It has one year after obtaining SEBI approval to initiate the IPO.

It is not the first time that Catholic Syrian Bank has sought to list shares on the stock exchanges. In 2015, it filed a DRHP with the markets regulator to raise Rs 400 crore. The opportunity, however, was not taken up.

CSB Bank’s shares will be listed on both the Bombay Stock Exchange and the National Stock Exchange. The date of listing is not known yet.