CSB Bank zooms ~7% as FIH Mauritius offloads stake

27 Jun 2024 , 02:15 PM

CSB Bank shares climbed as much as 7% to ₹382.10 on the BSE in the early trading session after investment firm FIH Mauritius reportedly sold a 9.6% interest in the bank in a block sale.

At around 2.01 PM, CSB Bank was trading 3.38% higher at ₹368.35, against the previous close of ₹355.95 on NSE.

According to the term sheet released by lender IIFL, FIH Mauritius was scheduled to sell 1.68 crore shares of the bank at a floor price of ₹352.40 each. The floor price implies a 1% decrease from Wednesday’s closing price of ₹355.95.

FIH has a 49.72% share in the bank as of March 31, 2024, which will be reduced to almost 40% following the stake sale. CSB Bank shares have fallen 11% this year, while the Sensex has gained around 9%.

As of March 2024, the promoter and the promoter group owned 49.72% of the corporation, while the general public held 47.66%.

In December of last year, the promoter gained approval from the Reserve Bank of India (RBI) to retain a 26% ownership in the bank rather than the 15% originally suggested by the central bank. As a result, FIH Mauritius transactions must reduce its shareholding to 26% within 15 years after the conclusion of the transactions, which occurred in 2018.

Currently, the bank has more than 2.15 million customers. As of March 31, 2023, the CASA portfolio accounted for 32.18% of its total deposits. Tailor-made banking solutions have been developed to meet the specialised banking demands of diverse segments of society, with the goal of making the appropriate pitch to the right consumer at the right time.

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