CSB Bank IPO Issue Details:
IPO date: 22 Nov – 26 November 2019
Issue Size: 400 Cr (*around)
Offer Price: Rs 193 – Rs 195 Per Equity Share
Market Lot: 75 Shares & multiples
Exchange Listing: BSE, NSE
IPO Timelines (tentative dates):
Allotment & refund: 03 Dec
Credit to Demat: 03 Dec
Listing on Exchange: 04 December
Company Promoters: FIH Mauritius Investments Ltd (“FIHM”)
Objective of the Issue: Bank’s future capital requirements
IPO Registrar: Link InTime India Pvt Ltd
- Kerala based CSB bank formerly known as Catholic Syrian Bank is one of the oldest private sector banks in India (almost 100 years old bank).
- Presence in Kerala, Maharashtra, Tamil Nadu and Karnataka (more than 60% in Kerala only)
- business areas – Major portion of gold loans in portfolio. Operation in SME Banking, Wholesale Banking, Retail Banking, Treasury Operations
- The company website: https://www.csb.co.in/
CSB Bank IPO Analysis (Review):
Net NPA (Non performing Assets):
year 2017 – 4.12%
year 2018 – 2.87%
year 2019 – 2.27%
- The net NPAs decreased to 2.27% from 4.12%
- Retail offering driven by strong gold loan portfolio
- The bank income might turn positive for this year as per Bank Management statements.
- Net losses from business in last 3-4 years due to high NPA.
- Recent Kerala flood may impact the Bank income in terms of earnings & NPA.
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- Decreasing NPA, major gold portfolio are plus while Net losses in last few years, recent Kerala flood are key risks.
- GMP (Grey Market Premium) is around 80 Rs as of 15th Nov. But the GMP is doubtful whether manipulative or real in this case.
- Considering all factors, my personal view is ‘neutral’ for listing gain, I recommend you to watch QIB & NII subscription response till 1 pm (last day) & based on figures take the decision on market response/sentiment.
BullRun IPO-India Ratings: 2.5 stars (out of 5 Stars)
CSB Bank Analysis video link: https://youtu.be/02lhIu35d2Q
CSB Bank IPO Allotment Check:
- how and where to check allotment status (link)
CSB Bank Subscription Status:
EPS – Earning per share
OFS – Offer for Sale
P/E – Price to Earning
RoE – Return on Equity
QIB – Qualified Institutional Buyer
NII – Non-Institutional Investors
RII – Retail Individual Investor
Disclaimer & Conflict of Interest:
The above analysis is based on research of the company and RHP of CSB Bank. You should study more before taking any decision.
Analysis by – NISM Certified Research Analyst & Investment Advisor.