CSB Bank Limited - IPO Note - IPO Opens on Nov 22,2019
Issue Details
CSB Bank Limited
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Issue Period
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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
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Issue Details
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Fresh Issue of Equity Shares aggregating upto Rs.24 Cr
+ Offer for Sale of upto 19,778,298 Equity Shares
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Issue Size (Rs. Cr)
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Rs.405.72~ Cr – Rs.409.68^ Cr
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Price Band
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Rs.193 – 195
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Bid Lot
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75 Equity Shares and multiple thereof
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Issue Structure :
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QIB
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75% of the offer ( 15,766,366~ - 15,756,801^ Shares ) (Rs.304.29~Cr - Rs.307.26^ Cr)
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NIB
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15% of the offer ( 3,153,273~ - 3,151,360^ Shares ) (Rs.60.86~Cr - Rs.61.45^ Cr)
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Retail
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10% of the offer ( 2,102,182~ - 2,100,906^ Shares ) (Rs.40.57~Cr - Rs.40.97^ Cr)
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~ Lower Price Band and ^Upper Price Band
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BRLMs
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Axis Capital, IIFL Securities
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Registrar
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Link Intime India Pvt Ltd
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Note : Application made using third party UPI or ASBA Bank A/c are liable to be rejected.
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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
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As at March 31,
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2019
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2019
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2018
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2017
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Equity Share Capital
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172.28
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85.97
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81.01
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81.01
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Reserves as stated
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1,363.71
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236.68
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272.63
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465.13
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Net worth
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1,535.99
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974.00
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353.64
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546.15
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Deposits
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15,509.82
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15,123.87
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14,690.65
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14,911.56
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Deposits Growth (%)
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-
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2.95%
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(1.48)%
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-
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Advances
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11,402.83
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10,905.48
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9,685.25
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8,271.59
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Advances Growth (%)
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-
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12.60%
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17.09%
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-
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Interest Earned
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732.30
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1,347.52
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1,296.81
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1,336.30
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Interest Earned Growth (%)
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-
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3.91%
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(2.96)%
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-
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EBITDA as stated
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113.58
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34.96
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94.96
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171.70
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EBITDA (%)
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15.51%
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2.59%
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7.32%
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12.85%
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Profit Before Tax
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68.93
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(97.61)
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(194.89)
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(100.44)
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Profit after Tax
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44.27
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(65.69)
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(127.09)
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(57.99)
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Net Profit as % to revenue
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6.05%
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(4.87)%
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(9.80)%
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(4.34)%
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Net Interest Margin (%)
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3.43%
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2.80%
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2.57%
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2.11%
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Gross NPA (%)
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2.86%
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4.87%
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7.89%
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7.25%
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Net NPA (%)
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1.96%
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2.27%
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2.87%
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4.12%
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EPS (Rs.) as stated^
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3.86~
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(7.90)
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(15.70)
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(7.66)
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RoNW (%)^
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2.88~
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(6.74)
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(35.94)
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(10.62)
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Net Asset Value (Rs.)^
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89.19
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73.54
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43.68
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67.46
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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
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