Private sector lender Catholic Syrian Bank (CSB) is back to mulling an initial public offering, having shelved the plan in March 2015 and an unsuccessful effort to sell a partial stake to Indian-origin Canadian billionaire Prem Watsa's Fairfax Financial Holdings.
"An IPO (initial public offering) is back on the table for Catholic Syrian Bank. They are seriously exploring that. They are in preliminary discussions, though no final decision has been taken as of yet. For now, they are exploring an IPO and continue to explore a private stake sale," the Mint quoted a source as saying on Thursday.
However, the bank did not confirm or deny IPO plans to the business daily.
Differences over valuation led to 51 percent stake sale to Fairfax Financial Holdings not fructifying, prompting the Thrissur-based, 97-year-old bank to approach the primary market.
A Bloomberg report in May this year said that the bank's share was valued at about Rs 165-200 per unit and Fairfax Financial was offered at a 15 percent premium to the price for acquiring controlling stake.
CSB was formed on November 26, 1920, and commenced business from January 1, 1921, with a paid-up capital of Rs 45,270. Currently, it has 430 branches and 240 ATMs in India.
The last private sector commercial lender to hit the primary market was RBL Bank, while other segmented players such as AU Small Finance Bank have also raised money via the IPO route.
RBL Bank shares listed at 22 percent premium to the issue price of Rs 225 per share on August 31 last year and closed 2.19 percent higher at Rs 546 on Thursday (July 13) on the BSE.
AU Small Finance Bank, which debuted on the stock exchanges at 47 percent premium to the issue price of Rs 358 on Monday, and closed at Rs 689, up 9.55 percent from its previous close, on Thursday.
