CSB Bank Limited - IPO Note - IPO Opens on Nov 22,2019

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 IPO Note of "CSB Bank Limited".                                     Download Form – CSB Bank Ltd

                                                                                                                                                                                  
 Issue Details

CSB Bank Limited
Issue Period
Issue Opens On: Friday, November 22, 2019
Issue Closes On: Tuesday, November 26, 2019
The Anchor Investor Bidding Date shall be on 21st November, 2019
Issue Details
Fresh Issue of Equity Shares aggregating upto Rs.24 Cr
+ Offer for Sale of upto 19,778,298 Equity Shares
Issue Size (Rs. Cr)
Rs.405.72~ Cr – Rs.409.68^ Cr
Price Band
Rs.193 – 195
Bid Lot
75 Equity Shares and multiple thereof
Issue Structure :

QIB
75% of the offer ( 15,766,366~ - 15,756,801^ Shares ) (Rs.304.29~Cr - Rs.307.26^ Cr)
NIB
15% of the offer ( 3,153,273~ - 3,151,360^ Shares ) (Rs.60.86~Cr - Rs.61.45^ Cr)
Retail
10% of the offer ( 2,102,182~ - 2,100,906^ Shares ) (Rs.40.57~Cr - Rs.40.97^ Cr)
~ Lower Price Band and ^Upper Price Band
BRLMs
Axis Capital, IIFL Securities
Registrar
Link Intime India Pvt Ltd
Note : Application made using third party UPI or ASBA Bank A/c are liable to be rejected.

Issue Highlights

q  Incorporated on November 26, 1920 CSB Bank Limited ("CSB") is one of the oldest private sector banks in India with a history of over 98 years, transforming to a new age private bank backed by a new marquee investor – Fairfax India through FIH Mauritius Investments Ltd (FIHM). It offers a wide range of products and services to their overall customer base of 1.3 million as on September 30, 2019, with particular focus on SME, Retail, and NRI customers.

q  CSB has a strong base in Kerala along with significant presence in Tamil Nadu, Karnataka, and Maharashtra.

q  In 2018, RBI accorded its approval to Fairfax India through FIHM to acquire 51% stake resulting in capital infusion of ~₹ 1,207.68 crore.

q  With the Fairfax's backing to vitalize CSB's Growth Engine, Bank has transformed into New Age Bank with having the pillars as Capital Augmentation, Revamping Employee Base, Re-aligning Organisational Set-up, Degitization & Technology, Expanding Products & Services, Enhansing customer Experience and Markting & Branch Building.

q CSB has 4 principal business areas, namely, SME Banking, Retail Banking, Wholesale Banking and Treasury operations.

q  As on September 30, 2019, CSB had a network of 412 branches (excluding 3 service and 3 asset recovery branches) and 290 ATMs.
q  The shares will be listed on BSE and NSE.

Competitive Strength

q  Strong channel network and trusted brand in South India
q  Strong capital base for growth
q  Well established SME business
q  Retail offering driven by strong gold loan portfolio
q  Stable and granular deposit base
q  Professional and experienced management with strong and independent Board
q  Streamlined risk management controls, policies and procedures

Key Business Strategies

q  Accelerate transformation as new age private bank
q  Grow the asset business with focus on SME, agricultural and retail customers
q  Continue to leverage strong deposits franchise
q  Grow and diversify the distribution infrastructure in key geographical locations
q  Maximizing non-interest income by widening products and services for corporates as well as retail customers
q  Invest in technology to improve operational efficiency, scalability and customer experience
q  Strengthening risk management
q  Focus on NPA recovery and improve asset quality

Brief Financial Details*                                                                                                                                (₹ In Cr)

As at Sep'30
As at March 31,
2019
2019
2018
2017
Equity Share Capital
172.28
85.97
81.01
81.01
Reserves as stated
1,363.71
236.68
272.63
465.13
Net worth
1,535.99
974.00
353.64
546.15
Deposits
15,509.82
15,123.87
14,690.65
14,911.56
Deposits Growth (%)
-
2.95%
(1.48)%
-
Advances
11,402.83
10,905.48
9,685.25
8,271.59
Advances Growth (%)
-
12.60%
17.09%
-
Interest Earned
732.30
1,347.52
1,296.81
1,336.30
Interest Earned Growth (%)
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3.91%
(2.96)%
-
EBITDA as stated
113.58
34.96
94.96
171.70
EBITDA (%)
15.51%
2.59%
7.32%
12.85%
Profit Before Tax
68.93
(97.61)
(194.89)
(100.44)
Profit after Tax
44.27
(65.69)
(127.09)
(57.99)
Net Profit as % to revenue
6.05%
(4.87)%
(9.80)%
(4.34)%
Net Interest Margin (%)
3.43%
2.80%
2.57%
2.11%
Gross NPA (%)
2.86%
4.87%
7.89%
7.25%
Net NPA (%)
1.96%
2.27%
2.87%
4.12%
EPS (Rs.) as stated^
3.86~
(7.90)
(15.70)
(7.66)
RoNW (%)^
2.88~
(6.74)
(35.94)
(10.62)
Net Asset Value (Rs.)^
89.19
73.54
43.68
67.46
Source: RHP  *Summary Statement,  ~ not annualised    ^ Before taking into consideration of conversion of warrants and
ESOP allotment 


For additional information & risk factors please refer to the Red Herring Prospectus

  Download Form – CSB Bank Ltd

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