Tamilnad Mercantile Bank Opens 3 Days IPO Today: Price Band at Rs. 500-525

Tamilnad Mercantile Bank opens its 3-day initial public offering (IPO) today, on September 5, 2022. The IPO will conclude on September 7, 2022. The bank has fixed the price band at Rs. 500-525 per share. The IPO is having an Rs. 832-crore initial share offer. According to the bank, it has already received above Rs. 363 crore from the anchor investors ahead of the IPO, and 71.28 lakh equity shares will be allocated to the anchor investors, leading to a transaction size of Rs. 363.5 crore. The shares of Tamilnad Mercantile Bank are expected to be listed on stock exchanges like BSE and NSE on September 15, 2022.

The IPO's 75% is reserved for qualified institutional investors, 15% is reserved for non-institutional investors, and the rest 10% is reserved for retail investors. The IPO's anchor investors are Societe Generale, Nomura Singapore, Bajaj Allianz Life Insurance Company, Max Life Insurance Company, Kotak Mahindra Life Insurance Company, and Moneyewise Financial Services.

The IPO will issue 1.58 crore fresh equity shares. The bank has proposed to utilize the proceeds for augmenting the core capital. So, it will touch 25% from the present 22% post IPO. On that matter, KV Rama Muthry, MD & chief executive has mentioned that Tamilnad Mercantile Bank does not come under the SEBI regulation of 25% minimum public shareholding. The bank is already fully owned by the shareholders.

Private sector lender, Tamilnad Mercantile Bank, (TMB), was established in 1921. Now the bank offers services mostly to the micro, small and medium enterprises (MSMEs), agricultural and retail sectors.