The initial public offering of Tamilnad Mercantile Bank will close today. The issue, which opened on September 5, was subscribed 1.53 times at the end of the second day.

According to data available with the exchanges, the offer received bids for 1.33 crore shares as against 87.12 lakh shares on offer.

The ₹863-crore public issue comes at a price band of ₹500-525 a share.

While 75 per cent of the issue has been reserved for qualified institutional investors, non-institutional investors can bid for 15 per cent, and the remaining 10 per cent is to be allotted to retail investors. The market lot is 28 shares.

The quota for Retail Individual Investors (RIIs) was subscribed 3.61 times, and non-institutional investors 1.27 times. That for Qualified Institutional Buyers (QIBs) received 98 per cent.

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Anchor investors

The IPO will be a fresh issue of 1.58 crore equity shares and the bank proposes to utilise the proceeds to augment its core capital.

Ahead of the issue, the Thoothukudi-based private sector lender raised ₹363.53 crore from anchor investors, largely insurance companies. It will allocate 71.28 lakh equity shares to anchor investors at ₹510 apiece. Bajaj Allianz Life Insurance, Nomura Singapore, Max Life Insurance (for various schemes), Societe Generale, Kotak Mahindra Life Insurance, Cholamandalam MS General Insurance, Authum Investment, and Alchemie Ventures Fund are some of the anchor investors.

Because of anchor allocation, the public issue has been reduced to 87.12 lakh shares from 1.58 crore shares.

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