Catholic Syrian Bank, the Kerala based private sector lender, has received Sebi's approval to launch an IPO. The bank filed draft papers with the market regulator in August and as per the SEBI, received its observations on October 1.
Through the IPO offer, CSB Bank is looking at raising fresh capital by issuing shares worth Rs 30 crore in addition to an offer for sale or OFS of 1.98 crore shares by existing shareholders.
As per the bank, proceeds would be put towards "augmenting the bank's tier-1 capital base to meet future capital requirements which are expected to arise out of growth in our bank's assets, primarily our bank's loans/advances and investment portfolio, and to ensure compliance with Basel III and other RBI guidelines".
Canada-based billionaire Prem Watsa has a controlling interest in the bank that reported loss of Rs. 194 crore in the FY 2018-19.
Shares of Catholic Syrian Bank which has a significant presence in Kerala, Tamil Nadu, Karnata and Maharashtra will be listed on both the leading exchanges.