On June 27, approximately 9.7% of CSB Bank stake was sold in a block deal worth Rs 595 crore, likely executed by promoter FIH Mauritius Investments.
Deal Details
About 1.70 crore shares were traded on the exchanges at an average price of Rs 353 per share, representing a nearly 1% discount from the previous closing price. CNBC Awaaz had earlier reported that FIH Mauritius Investments aimed to sell its 9.72% stake in the Kerala-based private lender through this block deal, raising Rs 595 crore.
Promoter Holding Adjustment
As per the latest shareholding data, the promoter initially held 49.72% stake in CSB Bank. Following the stake sale, their ownership will reduce to 40%.
Regulatory Context
In November 2023, CSB Bank’s promoter received approval from the Reserve Bank of India (RBI) to retain a 26% stake, revised from the earlier requirement of reducing stake to 15%. This adjustment followed a legal dispute involving Uday Kotak, promoter of Kotak Mahindra Bank, regarding the promotion of broader ownership in banks.
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