Tamilnad Mercantile Bank’s three-day initial public offering (IPO) will open for public subscription next week on Monday 5 September 2022 and close on Wednesday 7 September. The Tuticorin-based private lender has set the price range to €500-525 a share for his €832 crore initial share offering.
The company said Friday it had mobilized a little €363 crore from anchor investors ahead of its issuance. It has decided to allocate 71.28 lakh shares to anchor investors €510 per piece, the transaction size aggregates too €363.5 crore according to a circular uploaded to the BSE website.
Societe Generale, Nomura Singapore, Bajaj Allianz Life Insurance Company, Max Life Insurance Company, Kotak Mahindra Life Insurance Company and Moneyewise Financial Services are among the anchor investors.
The IPO will be a new issue of 1.58 billion shares and the bank proposes to use the proceeds to increase its Tier 1 capital, which will reach 25% from the current 22% post-issuance and will also meet future capital requirements.
Its managing director and chief executive KV Rama Muthry was saying that the bank does not fall under the Sebi norm of 25% minimum public participation as it is already fully owned by shareholders.
According to market observers, Tamilnad Mercantile Bank shares are available at a premium (GMP) of €34 today on the gray market. The Company’s shares are expected to list on the BSE and NSE stock exchanges on Thursday 15th September 2022.
Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are the lead managers and Link Intime India Private Ltd 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.
Tamilnad Mercantile Bank (TMB) is one of the oldest private banks with a 101 year history, established in 1921 as Nadar Bank. The bank offers a wide range of services mainly to micro, small and medium-sized enterprises, agricultural and private customers. The bank operates 509 branches, 369 of which are in the home state of Tamil Nadu, which handles over 70% of its business, and the rest of the branches are spread across 15 states and four union territories.
Get all the business news, market news, breaking news and latest news updates on Live Mint. Download the Mint News app for daily market updates. More less
Subscribe to something Mint newsletter
* Enter a valid email address
* Thank you for subscribing to our newsletter.
Post your comment
Comments are closed.