Shares of Kerala-based CSB Bank Limited (NSEI:CSBBANK) rose 7% in the early trading session on BSE to INR 382.10, after investment firm FIH Mauritius likely sold off a 9.6% stake in the bank through a block deal According to the term sheet issued by the banker IIFL, FIH Mauritius was expected to sell 16.8 million shares in the bank at a floor price of INR 352.40 per share. The floor price represents a 1% discount to June 26, 2024?s closing price of INR 355.95. FIH held a 49.72% stake in the bank as of March 31, 2024, which will be reduced to nearly 40% post the stake sale.

Shares of CSB Bank have declined 11% so far this year compared to the Sensex's gain of approximately 9%. Overall, the public held 47.66% stake in the company as of March 2024 while 49.72% stake was held by the promoter and the promoter group. In December last year, the promoter received approval from the Reserve Bank of India (RBI) to retain a 26% stake in the bank instead of the 15% previously advised by the central bank.

Accordingly, FIH Mauritius Investments must reduce its shareholding to 26% within 15 years from the date of the completion of investments, which was in 2018.