The public issue received bids for 39.83 lakh equity shares against the IPO size of 1.15 crore share.
The Rs 410-crore public offer of CSB Bank, formerly Catholic Syrian Bank, was fully subscribed on November 22, the opening day itself.
The public issue received bids for 1.20 crore equity shares against the IPO size of 1.15 crore shares (excluding anchor book), as per data available on exchanges. As a result, the issue subscribed 1.05 times.
The reserved category for retail investors was subscribed 5.6 times, while the portion set aside for non-institutional investors received subscription of 9.5 percent. Qualified institutional buyers are yet to get subscription.
The Kerala-based lender has already raised Rs 184 crore from anchor investors on November 21, at higher end of price band of Rs 193-195 per share.
According to a regulatory filing, the bank finalised the allocation of 94,54,080 shares to 24 anchor investors, including Omers Administration Corporation OAC Custody Account (SCV6), ICICI Prudential MF, SBI MF, Aditya Birla Sun Life Trustee, Axis MF, Sundaram MF, HSBC and Ashoka India Opportunities Fund.
The public offer consists of a fresh issue of shares to raise up to Rs 24 crore and an offer for sale of 1.97 crore scrips by existing investors.
Mehta Equities believes the IPO provides a good scope for growth and is a favourable investment opportunity.
The bank posted turnaround results in the first six months of FY20 and improved its operational and financial performance.
The brokerage house believes the bank should do well with the recent capital raise and its strong risk management frameworks. It has to deliver the best on its core strength supported by the private equity Fairfax, which holds promoter stake, it said.
On valuation front, at the upper end of the price band, CSB is demanding a market cap of Rs 3,382 crore and valued at a 2.2x P/BV.
"Considering turnaround performance and focusing on implementation of strategic changes in business model to function efficiently as a full service new age private sector bank backed by FIHM, the Promoter, we stand positive on the investment rationale and recommend investors to subscribe to the issue for short-term basis as well as for listing gains,” it said.
The IPO closes on November 26. The bank, in consultation with merchant bankers, will finalise basis of allotment on December 2 and will credit equity shares to shareholders' DP accounts on December 3, Axis Capital said in its note.Equity shares are proposed to be listed on the BSE and the National Stock Exchange on December 4. The lead managers to the issue are Axis Capital and IIFL Securities.LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.