Tamil Nadu Mercantile Bank’s three-day initial public offering (IPO) will open for public subscription next week on Monday, September 5, 2022 and will end on Wednesday, September 7. Tuticorin-based private sector lender has fixed the price band 500-525 per share for this 832 crore initial share offer.
The company said on Friday that it had raised slightly more 363 crore from anchor investors prior to its issue. It has decided to allot 71.28 lakh equity shares to anchor investors: 510 each, including transaction size 363.5 crore, as per a circular uploaded on the BSE website.
Societe Generale, Nomura Singapore, Bajaj Allianz Life Insurance Company, Max Life Insurance Company, Kotak Mahindra Life Insurance Company and Moneywise Financial Services are among the anchor investors.
IPO There will be a fresh issue of 1.58 crore equity shares and the bank proposes to use the proceeds to raise its core capital, which will touch 25% after the current 22% and also meet future capital requirements .
With this, the bank does not come under SEBI norm of 25% minimum public shareholding as it is already held by the shareholders, its managing director and chief executive KV Rama Muthri said.
According to market observers, Tamil Nadu Mercantile Bank K shares are available at Premium (GMP) 34 in the gray market today. The company’s shares are expected to be listed on the stock exchanges BSE and NSE on Thursday, 15th September, 2022.
Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers and Link Intime India Private Limited is the registrar for the IPO. 75% of the issue is reserved for qualified institutional investors, 15% for non-institutional investors and the remaining 10% for retail investors.
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 bank provides a wide range of services primarily to Micro, Small and Medium Enterprises, Agriculture and Retail customers. The bank operates 509 branches, out of which 369 are in the home state Tamil Nadu, which receives more than 70% of the business and the remaining branches are spread over 15 states and four union territories.
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