Tamilnad Mercantile Bank IPO subscribed 2.86 times

7 Sep 2022 , 05:21 PM

The initial public offer (IPO) of Tamilnad Mercantile Bank received bids for 2,49,34,588 shares as against 87,12,000 shares on offer, according to stock exchange data 17:15 IST on Wednesday (7 September 2022). The issue was subscribed 2.86 times. The issue opened for bidding on Monday (5 September 2022) and it will close on Wednesday (7 September 2022). The price band of the IPO is fixed at Rs 500-525 per share. An investor can bid for a minimum of 28 equity shares and in multiples thereof. The IPO consists entirely of a fresh issue of 1.58 crore equity shares of face value of Rs 10 each. There is no identifiable promoter of the bank and none of the shareholder holds more than 5% share capital of the bank. The bank proposes to utilize the net proceeds towards augmenting its Tier I capital base to meet its future capital requirements. Additionally, bank expects to receive the benefits of listing the equity shares on the stock exchanges. The listing of the equity shares is also in line with RBI requirement to relax restrictions for the bank on branch opening for failing to raise subscribed capital to at least one-half of authorized capital, as per RBI letter to bank dated 15 March 2021. Ahead of the IPO, Tamilnad Mercantile Bank on Friday, 2 September 2022, raised Rs 363.52 crore from anchor investors. The board allotted 71.28 lakh shares at Rs 510 a share to 21 anchor investors. Tamilnad Mercantile Bank is one of the oldest and leading old private sector bank headquartered at Thoothukudi, Tamil Nadu with a history of over 100 years. The bank has a network of 509 branches, 12 administrative offices, 1,141 ATMs, 282 cash recycler machines (CRMs), and 101 E-lobbies. Out of these 509 branches, 76 branches are in metropolitan areas, 80 branches are in urban areas, 247 branches are in semi-urban areas, and 106 branches are in rural areas. The bank has wide presence in South India and further diversifying branches in other states of India, with 90 branches located in the states of Maharashtra, Gujarat, Karnataka and Andhra Pradesh respectively. The bank reported a net profit of Rs 821.92 crore and net total income of Rs 2,637.80 crore in the twelve months ended on March 2022. Powered by Capital Market – Live News