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CSB Bank zooms 54% over issue price on market debut

RIIs had bade for 44 times their quota limit in the issue that was sold between November 22 and 26.

ETMarkets.com|
Updated: Dec 04, 2019, 04.06 PM IST
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Amid a strong listing for the stock, a few analysts advised profit booking on the counter.
NEW DELHI: Shares of CSB Bank made a strong stock market debut on Wednesday, as the scrip got listed at Rs 275 apiece on BSE, a 41.03 per cent premium over its issue price of Rs 195.

The scrip ended the first day at Rs 300.10 on BSE, up 53.90 per cent. On NSE, it rose 54.03 per cent to Rs 300.35.

This was better than the grey market trend, where the scrip was trading at a Rs 65-67 premium, translating into a 33-34 per cent upside.

The IPO by the bank was a huge success. Retail individual investors (RII) had bade for 44 times their quota limit in the issue that was sold between November 22 and 26. Overall, the issue was subscribed 87 times.

It's Fuzzy the Cat! (3)

Amid a strong listing for the stock, a few analysts advised profit booking on the counter.

“We recommend to book profits, as the bank will take time to deliver even a 1 per cent RoA amidst a weak operating environment, with higher exposure to the MSME segment. It would be better to buy shares of other banks with more established RoA like a Federal, RBL or DCB, which trade at a discount to CSB Bank," said Mona Khetan, Banking Analyst at Reliance Securities.

Before CSB Bank’s strong show, IRCTC, Affle India and Polycab India were three public issues that saw over 50 times subscription this calendar. They all had strong market debut.

While IRCTC climbed 101 per cent on its market debut to Rs 644, Affle India got listed at a 24.82 per cent premium to Rs 929 against its issue price of Rs 745 per share. Polycab India, on the other hand, got listed at an 18 per cent premium to issue price.

Some 24 firms have been waiting with necessary approvals from the Securities and Exchange Board of India (Sebi) to hit the market and raise around Rs 16,000 crore collectively, data from primary market tracker Prime Database showed.

They include Bajaj Energy, Shriram Properties, Emami Cement, Penna Cement Industries, Indian Renewable Energy Development Agency (IREDA), Shyam Metalics and Energy, among others.
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