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The IPO of Tamilnad Mercantile Bank was subscribed 0.86 times on the first day of issue opening. At the end of Monday's data, the offer received bids for 72.56 lakh shares as against 87.12 lakh shares on offer.
The ₹863-crore public issue of Tamilnad Mercantile Bank, which opened for public subscription on Monday, closes on September 7. The IPO comes at a price band of ₹500-525 a share.
While 75 per cent of the issue has been reserved for the qualified institutional investors, non-institutional investors can bid for 15 per cent and the remaining 10 per cent can be allotted for retail investors. Market lot is 28 shares.
The quota for Retail Individual Investors (RIIs) was subscribed 1.53 times, while that for Qualified Institutional Buyers (QIBs) received 73 per cent and non-institutional investors 58 per cent.
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 has raised ₹363.53 crore from anchor investors, largely insurance companies. It has decided to allocate 71.28 lakh equity shares to anchor investors at ₹510 apiece. Bajaj Allianz Life Insurance, Nomura Singapore, Max Life Insuranc, Societe Generale, Kotak Mahindra Life Insurance, Cholamandalam MS General Insurance, Authum Investment, and Alchemie Ventures Fund are some of the anchor investors.
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