Retail individual investors' category received 6.48 times subscription, while the quota for non-institutional investors was subscribed 2.94 times. The category for qualified institutional buyers (QIBs) got 1.62 times subscription for the IPO.
As per market observers, Tamilnad Mercantile Bank shares are available at a premium (GMP) of ₹14 in the grey market today. The finalisation of the share allotment is done this week and the shares of the company are expected to list on stock exchanges BSE and NSE this week on Thursday, September 15, 2022.
The price band was fixed at ₹500-525 per share. The Tuticorin-based had mobilised a little over ₹363 crore from anchor investors ahead of its share sale. Tamilnad Mercantile Bank IPO is a fresh issue of 1.58 crore equity shares. The bank proposes to utilise the proceeds from the issue for augmenting its Tier–I capital base to meet future capital requirements.
Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks with a history of 101 years, having been established in 1921 as Nadar Bank. The Tuticorin-based bank offers a wide range of services primarily to micro, small and medium enterprises, agricultural and retail customers and the bank operates 509 branches of which 369 are in the home state of Tamil Nadu, which fetches over 70% of business and the rest of the branches are spread across 15 states and four Union territories.
Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets were the managers to the initial share sale whereas Link Intime India Private Ltd was the registrar of the public issue.
