Tamil Nadu Mercantile Bank’s three-day initial public offering (IPO) was subscribed 2.86 times on the last day of its oblique membership, which closed on September 7, 2022. In the public offer of Rs 831 crore, bids were received for 2,49,39,292 shares, while there were 87,12,000 shares on offer.
The retail individual investors category was subscribed 6.48 times, while the quota for non-institutional investors was subscribed 2.94 times. The category of Qualified Institutional Buyers (QIBs) got 1.62 times subscription for this IPO,
According to market observers, Tamil Nadu Mercantile Bank K shares are available at Premium (GMP) 5 in the gray market today. The finalization of the share allotment is done this week and the shares of the company are expected to be listed on the stock exchanges BSE and NSE this week on Thursday, September 15, 2022.
The price band was fixed at 500-525 per share. Tuticorin-based had mobilized a bit more 363 crore from anchor investors before its share sale. Tamil Nadu Mercantile Bank’s IPO is the latest issue of 1.58 crore equity shares. The Bank proposes to utilize the proceeds from the issue to augment its Tier-I capital base to meet future capital requirements.
Tamil Nadu Mercantile Bank (TMB) is one of the oldest private sector banks with a history of 101 years, established in 1921 as Nadar Bank. The Tuticorin based bank provides a wide range of services primarily to micro, small and medium enterprises, agriculture and retail customers and the bank operates 509 branches, of which 369 are in the home state of Tamil Nadu, accounting for over 70% Receives business and the remaining branches are spread over 15 states and four union territories.
Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets were the managers of the initial share sale while Link Intime India Private Limited was the registrar of the public issue.
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