BAJAJ BROKING

Notification
No new Notification messages
Inventurus Knowledge Solutions IPO is Open!
Apply for the Inventurus Knowledge Solutions IPO through UPI in just minutes.
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Trade Now, Pay Later with up to 4x
Never miss a good trading opportunity due to low funds with our MTF feature.
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.

Fairfax Group to Sell 9.72% Stake in CSB Bank for ₹595 Crore

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Synopsis:

Fairfax Group, led by Prem Watsa, is set to sell a 9.72% stake in CSB Bank, raising ₹595 crore. The sale will reduce its holding from 49.72% to 40%. The shares will be sold at a floor price of ₹352.4/share.

CSB Bank Stake Sale News Today

Indian-born Canadian billionaire Prem Watsa's Fairfax Group is poised to divest a 9.72% stake in CSB Bank. This transaction is anticipated to generate approximately ₹595 crore. The stake sale will be executed through block deals on Thursday, June 27, 2024.

Transaction Details

According to the term sheet released by IIFL, the bank handling the sale, FIH Mauritius Investments, a Fairfax Group entity, plans to sell 1.68 crore shares of the Kerala-based bank. The shares will be sold at a floor price of ₹352.4 per share, a 1% discount from the previous day's closing price of ₹355.95.

Explore: Csb Bank Limited Share Price

Impact on Stakeholding

As of March 31, 2024, FIH held a 49.72% stake in CSB Bank. Post-transaction, this stake will be reduced to 40%. This sale comes amid a 15% decline in CSB Bank's shares this year, contrasting with the Sensex's 9% gain.

Historical Context

In 2018, Fairfax Group was approved by the banking regulator to acquire up to a 51% stake in CSB Bank. This move made CSB Bank the first in India to have majority ownership by a foreign investor. Initially, banking regulations mandated that promoters reduce their stake to 15% after 15 years.

Regulatory Changes

These regulations were challenged in the Bombay High Court by Uday Kotak, founder of Kotak Mahindra Bank, who advocated for allowing promoters to retain up to 26% ownership. This led to a regulatory shift permitting higher promoter stakes.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Share this article: 

Read More Blogs

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

8 Lacs+ Users

icon-with-text

4.4+ App Rating

icon-with-text

4 Languages

icon-with-text

₹4700+ Cr MTF Book

icon-with-text