The initial public offering of Tamilnad Mercantile Bank was subscribed 2.86 times on the final day of issue on Wednesday. The IPO, which opened on September 5, received bids for 2.49 crore shares as against 87.12 lakh shares on offer.

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

The quota for retail individual investors (RIIs) was subscribed 6.48 times and non-institutional investors 2.94 times. The portion reserved for qualified institutional buyers (QIBs) was subscribed 1.68 times.

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. The bank had allocated 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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