The insurance arms of ICICI Bank ICICI Prudential Life Insurance and ICICI Lombard HDFC Life Insurance and Edelweiss Tokyo Life Insurance, which had picked up 5% each in CSB Bank three years ago, have exited the company during the initial public offering at more than 60% gain.
The old generation private sector lender earlier known as Catholic Syrian Bank made its stock market debut on Wednesday, closing at about 54% over the issue price, on the BSE.
The insurers picked up stake in the bank about three years ago at 120 per share. They have now exited at 195 apiece, which is a gain of 62.5%. During the comparable period, Sensex gave a return of 56% while Bank Niftys return was 75%.
CSB shares debuted at 275 on the BSE or 41% higher than the issue price. During the day, it rose 57.43% to 307 and later closed at 300.10, a sharp gain of 53.90% over the issue price.
CSBs IPO, which was to raise 410 crore, was oversubscribed 87 times.
A total of 40.27 lakh shares of the company were traded on the BSE during the day. The companys market capitalisation stood at 5,205.41 crore.
The IPO was primarily to meet regulatory requirements since the bank was well capitalised. CSB reported a profit of 44 crore for the half year ended September 2019 compared with a loss of 197 crore loss for the full financial year 2018-19.
The bank has put its house in order in the last few years after Indo-Canadian billionaire Prem Watsas Fairfax India picked up majority stake in the lender.