Tamil Nadu Mercantile Bank IPO to open on 5th September

30 Aug 2022 , 09:04 AM

On Monday, September 5, the initial public offering (IPO) of private lender Tamilnad Mercantile Bank (TMB) will open.

The company will sell its shares for between Rs500 and Rs525 a share. Subscriptions for the anticipated primary offering are accepted through September 7th.

The initial public offering (IPO) is a wholly new issue of up to 1,588,400 equity shares with a face value of Rs10 apiece, totaling Rs831.6 crore. 

TMB is one of the oldest private lenders in the nation and provides a variety of banking and financial services, mostly to small, medium, and large businesses, as well as agricultural and retail clients.

Investors may submit a bid for as few as 28 equity shares, and then in multiples of that. The launch of the anchor book is set for Friday, September 2.

The private lender with headquarters in Thoothukudi (previously Tuticorin) intends to use the net proceeds from the offering to increase its tier-I capital base in order to achieve its capital requirements and reap the benefits of being listed on stock markets.

There are 50.8 million customers with the lender, 41.8 million, or nearly 85%, of whom are from Tamil Nadu. It does, however, have a presence in Delhi, Gujarat, Maharashtra, Karnataka, and Andhra Pradesh.

As of March 31, 2022, the lender had 509 branches, with 106 in rural areas, 247 in semi-urban areas, 80 in urban areas, and 76 in metropolitan areas.

The business reported total revenue of Rs 4,656.44 crore for the fiscal year that ended on March 31, 2022. 

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