KOCHI:
CSB Bank Limited (the “Bank”) proposes to open its initial public offering (“IPO”) of equity shares of face value of Rs. 10 each (“Equity Shares”) on November 22, 2019.
The Anchor Investor Bid/Offer Period shall be 1(one) Working Day prior to the Bid/Offer Opening Date which is November 21, 2019. The IPO consists of fresh issue aggregating up to Rs. 240 million (“Fresh Issue”) and an offer for sale of up to 19,778,298 equity shares by the Selling Shareholders, (“Offer For Sale” and together with the Fresh Issue referred to as the “Offer”).
The Bid/Offer Closing Date will be on November 26, 2019. Bids can be made for a minimum lot of 75 Equity Shares and in multiples of 75 Equity Shares thereafter. The Equity Shares are proposed to be listed on the BSE Limited and the National Stock Exchange of India Limited (the “Stock Exchanges”).
The net proceeds from the Offer are proposed to be utilized to augment Tier-I capital base to meet Bank’s future capital requirements which are expected to arise out of growth in the Bank’s assets, primarily Bank’s loans/advances and investment portfolio and to ensure compliance with Basel III and other RBI guidelines. Further, the proceeds from the Offer will be used towards meeting the expenses of the Offer.
The Book Running Lead Managers (“BRLMs”) to the Offer are Axis Capital Limited and IIFL Securities Limited. The Offer is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (the “SEBI ICDR Regulations”). The Offer is being made through the book building process in accordance with Regulation 6(2) of the SEBI ICDR Regulations wherein at least 75% of the Offer shall be available for allocation on a proportionate basis to qualified institutional buyers (“QIBs”) (the “QIB Portion”), provided that the Bank, in consultation with the BRLMs may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis. One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price.
5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. If at least 75% of the Offer cannot be allotted to QIBs, the entire application money shall be refunded forthwith.
Further, not more than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All Bidders, other than Anchor Investors, are mandatorily required to participate in the Offer through the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective bank accounts and UPI ID in case of RIIs, as applicable, which will be blocked by the Self Certified Syndicate Banks (“SCSBs”), as the case may be. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process.
CSB Bank Limited is proposing, subject to, applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed the RHP with the Registrar of Companies, Kerala at Ernakulam on November 13, 2019. The RHP shall be available on the websites of SEBI, BSE, NSE at www.sebi.gov.in, www.bseindia.com and www.nseindia.com, respectively, and is available on the websites of the BRLMs, i.e. Axis Capital Limited and IIFL Securities Limited at www.axiscapital.co.in and www.iiflcap.com, respectively. Potential investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see “Risk Factors” beginning on page 23 of the RHP. Potential investors should not rely on the DRHP for any investment decision.
The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any applicable U.S. state securities laws. The Equity Shares are being offered and sold outside the United States in offshore transactions in reliance on Regulation S under the Securities Act and the applicable laws of the jurisdictions where such offers and sales are made. There will be no public offering in the United States.
