CSB Bank surge 7% after promoter likely sold 1.7 cr shares via block deal

Promoter FIH Mauritius Investments is likely to have sold as much as 9.7% of its stake in CSB Bank in the block deal, which was reportedly valued at ₹595 crore.

As many as 1.7 crore shares of the bank changed hands in the transaction, at an average price of ₹353 per piece. Promoters held a 49.72% stake in CSB Bank which will now be reduced by 9.72% to 40% post the block deal, reports said.

The stock opened the day at ₹373.10 on the NSE, up from Wednesday's closing of ₹355.95, before hitting the day's high. Shares of CSB Bank Ltd traded 3.20% higher ₹367.35 per share on the NSE at 2:50 pm.

In November 2023, CSB Bank’s promoters received the Reserve Bank of India's approval to retain a 26% stake in the lender. Following the mandate, FIH Mauritius Investments was required to bring down its then shareholding of 49.72% down to 26%.

The RBI had earlier asked bank promoters to reduce their shareholding to 15% to ensure these institutions are widely held. The mandate was later tweaked following a legal battle between the RBI and Kotak Mahindra Bank's Uday Kotak.

In 2019, the bank raised ₹409.67 crore via an Initial Public Offering. The public issue received strong investor interest, and it was subscribed 86.92 times. The bank’s shares were listed on the Indian stock exchanges on December 4, 2019.

CSB Bank Limited was established in 1920 and is Kerala’s oldest bank, according to the private sector lender’s website. The bank is presently focusing on initiatives to transform itself into a full-service contemporary bank. CSB Bank operates in four segments: treasury, corporate/wholesale banking, retail banking, and other banking operations.