The three-day initial public offering (IPO) of Tamilnad Mercantile Bank will open for public subscription next week on Monday, September 5, 2022 and conclude on Wednesday, September 7. The Tuticorin-based private sector lender has fixed the price band at ₹500-525 per share for its ₹832-crore initial share offer.
The company on Friday said it has mobilised a little over ₹363 crore from anchor investors ahead of its issue. It has decided to allocate 71.28 lakh equity shares to anchor investors at ₹510 apiece, aggregating the transaction size to ₹363.5 crore, according to a circular uploaded on the BSE website.
Kotak Mahindra Life Insurance Company, Societe Generale, Nomura Singapore, Bajaj Allianz Life Insurance Company, Max Life Insurance Company and Moneyewise Financial Services are among the anchor investors.
The IPO will be a fresh issue of 1.58 crore equity shares and the bank proposes to utilise the proceeds to augment its core capital, which will touch 25% from the present 22% post issue and also meet future capital requirements.
The bank does not come under the Sebi norm of 25% minimum public shareholding as it is already fully owned by shareholders, said its managing director and chief executive KV Rama Muthry.
As per market observers, Tamilnad Mercantile Bank shares are available at at premium (GMP) of ₹34 in the grey market today. The shares of the company are expected to list on stock exchanges BSE and NSE on Thursday, September 15, 2022.
75% of the issue has been reserved for qualified institutional investors, 15% for the non-institutional investors and the remaining 10% for retail investors, as said in economics times. Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers and Link Intime India Private Ltd is the registrar for the IPO.
Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks with a history of 101 years, having been established in 1921 as Nadar Bank. A wide range of services are offered by the bank primarily to micro, small, and medium enterprises as well as agricultural and retail clients. The bank operates 509 branches of which 369 are in the home state of Tamil Nadu, which fetches over 70% of business and the rest of the branches are spread across 15 states and four Union territories.