Kerala-based private lender Catholic Syrian Bank (CSB) on Monday said it has filed its draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (Sebi) for its initial public offering (IPO).
The bank is looking to raise capital amounting to Rs 30 crore through fresh issue of equity shares in addition to an offer-for-sale of 1.98 crore shares held by existing shareholders, according to the prospectus. Axis Capital and IIFL Securtities are the lead managers to the issue.
The bank in a statement said that net proceeds from the fresh issue will be utilised to augment the its Tier-I capital base and meet future capital requirements. These are expected to arise out of growth in assets, primarily loans, and the bank's investment portfolio. The fund-raise will also help it to ensure compliance with guidelines related to Basel III regulations and other regulatory requirements.
The private sector lender's total advances amounted to Rs 10,615 crore as on March 31, 2019, while it had a deposit base of Rs 15,214 crore. Indo-Canadian billionaire Prem Watsa-led Fairfax Financial last year received the Reserve Bank of India's (RBI) approval to acquire a controlling stake in the south-based lender under the condition to have it listed by September 30, 2019. Fairfax Financial owns 51% stake in Catholic Syrian Bank.