Catholic Syrian Bank’s talks with Prem Watsa’s Fairfax Financial Holdings have fallen through!
Fairfax Financial Holdings had shown interest to pickup 51% stake in Catholic Syrian Bank(CSB). But the talks have failed to fructify into a deal as reported by Mint. CSB will be reconsidering the IPO route raise capital along Private stake sale. The talks seems to have failed over differences in valuations.
Bloomberg had reported in May that Catholic Syrian Bank had hired an external agency for valuation. This external agency hired by the bank arrived at a valuation of Rs165-200 a share, plus a control premium of at least 15%. Fairfax did not agree with the valuation. Owing to which, CSB might consider going public once again. In march of 2015 Catholic Syrian Bank filed a DRHP with SEBI raise Rs 400 crore through an IPO. SEBI later approved it in June that year but the Bank decided to not follow through with the IPO. Instead it raised Rs114.5 crore through a preferential issue of shares to investors such as Edelweiss Tokio Life Insurance Co Ltd, Reliance Capital Ltd, ICICI Prudential Life Insurance Co Ltd and HDFC Standard Life Insurance Co Ltd.
IPO markets seems to gather speed. Close to Rs 10,000 crore has been raised by a total of 13 issues. Many lenders too have gone public this year such as AU Small Finance Bank Ltd, Equitas Holdings Ltd, Ujjivan Financial Services Ltd and universal bank RBL Ltd.
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