Edelweiss-backed CSB to float

The Kerala-based lender is likely to begin getting the rating done and selecting the merchant banks in June, Chairman S. Santhanakrishnan told LiveMint.

Edelweiss currently owns a 5% stake in CSB, while Mauritius-based AIF Gartmore and Siguler Guff jointly hold 15%. The bank's largest shareholder is Thai businessman Sura Chansrichawla, who has around 18%, although this is likely to be diluted to 10% after the share issue. Other stakeholders include Federal Bank (5%), Muthoot Pappachan Group (3%) and Larsen and Toubro (2%).

Santhanakrishnan said CSB should not have different groups - such as Edelweiss - holding sizable strategic stakes. "Several groups holding 5% stake in the bank will poise risks of instability to the bank," he commented. "The investor [Chansrichawla] has sought an extension from the Reserve Bank of India to bring down the stake and the bank supports that as his holding can come down to 10% following the public issue. This is in line with RBI direction."

Under RBI guidelines, Chansrichawla should have reduced his stake by the end of last month, but he claims he was unable to find a suitable investor.

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• Topics
• South Asia
• Exits
• Financials
• Financial Services
• IPO
• India
• AIF Capital
• Siguler Guff & Co.