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CSB Bank IPO sees subscription of 4.28 times on Day 2; retail quota subscribed 20 times

The offer received bids for 4,94,25,750 shares so far against the total issue size of 1,15,54,987 shares.

Nov 25, 2019, 05.26 PM IST
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NEW DELHI: The initial public offering (IPO) by CSB Bank got subscribed by 4.28 times on the second day of the offer with robust demand coming in from retail investors.

The offer received bids for 4,94,25,750 shares so far against the total issue size of 1,15,54,987 shares, according to data available with the National Stock Exchange.

The category reserved for non-institutional investors was subscribed 1.06 times, while that for retail investors was subscribed over 20 times.

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.

The company last week raised Rs 184 crore from anchor investors.

CSB Bank is planning to garner up to Rs 410 crore from the IPO. It has fixed a price of Rs 193-195 per share for the IPO. The public offer would close on November 26.

Brokerage firm Motilal Oswal Financial Services earlier gave ‘Subscribe’ rating to the issue. “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, investors can ‘Subscribe’ to the IPO for listing gains,” the brokerage house said.

Hem Securities also gave ‘Subscribe’ on the issue for listing gain as well as long term investment. The brokerage firm said CSB with its stable and granular deposit base has professional and experienced management with a strong and independent board which infuse optimism in future prospects of bank.

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