The ₹863-crore public issue of Tamilnad Mercantile Bank opens today for public subscription. The issue, which closes on 7, comes at a price band of ₹500-525 a share.
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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 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.
Anchor investors
Ahead of the issue, the Tuticorin-based private sector lender raised ₹363.53 crore from anchor investors, largely insurance companies and decided to allocate 71.28 lakh equity shares to anchor investors at ₹510 apiece. Bajaj Allianz Life Insurance, Nomura Singapore, Max Life Insurance, Societe Generale, Kotak Mahindra Life Insurance, Cholamandalam MS General Insurance, Authum Investment, and Alchemie Ventures Fund are some of the anchor investors.
Meanwhile, the IPO got a green signal from Securities Appellate Tribunal (SAT), which, on Friday, dismissed a petition filed by some minority shareholders who objected the Bank’s decision to scrap the offer-for-sale. It may be recalled that TMB had originally planned an OFS and fresh issue of shares when it filed the draft red herring prospectus in September 2021.