Fairfax Group Divests 9.7% Stake in CSB Bank for Rs 595 Crore

Canadian billionaire Prem Watsa's Fairfax Group divested a 9.7% stake in CSB Bank for Rs 595 crore through an open market transaction on Thursday. FIH Mauritius Investments, a subsidiary of the Toronto-based Fairfax Group, sold over 1.68 crore shares of CSB Bank via a block deal on the National Stock Exchange (NSE).

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Details of the Transaction

FIH Mauritius Investments, which is also the promoter of Thrissur-based CSB Bank, offloaded 1,68,68,645 shares. These shares were sold at an average price of Rs 352.75 each, making the total transaction value Rs 595.04 crore. Following this sale, FIH Mauritius Investments' shareholding in CSB Bank decreased from 49.72% to 40%.

Buyers and Market Reaction

Among the buyers of CSB Bank's shares were DSP Mutual Fund, ICICI Prudential Mutual Fund, WhiteOak Capital Mutual Fund, Edelweiss Tokio Life Insurance Company, Goldman Sachs, Morgan Stanley, Amansa Holdings, and Abu Dhabi Investment Authority. Shares of CSB Bank rose by 2.57%, closing at Rs 365.10 apiece on the NSE.

In January this year, CSB Bank reported a 4% decline in profit for the third quarter ended December 2023. The Kerala-based private sector bank earned a net profit of Rs 150 crore in this quarter compared to Rs 156 crore in the same period last year. However, its total income increased to Rs 887 crore during the quarter under review from Rs 682 crore in the same period last year.

Another Significant Transaction

In another notable transaction on the NSE, Kotak Mutual Fund sold 51.30 lakh shares of Zee Entertainment Enterprises Ltd (ZEEL) for Rs 79 crore through an open market transaction. Kotak Mutual Fund, through its affiliate Kotak Mahindra Mutual Fund A/C Kotak Balanced Advantage Fund, offloaded these shares at an average price of Rs 154.20 each.

This transaction amounted to Rs 79.10 crore. However, details regarding the buyers of ZEEL's shares were not available. On Thursday, ZEEL's stock fell by 2.96%, settling at Rs 151 per share on the NSE.

The divestment by Fairfax Group and Kotak Mutual Fund's sale reflect significant movements in the Indian stock market involving major financial entities and investments.

These transactions highlight ongoing shifts in shareholdings among prominent companies and mutual funds in India’s financial landscape.