Tamilnad Mercantile Bank on Friday raised ₹363.52 crore from anchor investors. The ₹863-crore public issue of TMB opens on September 5 and closes on 7 at a price band of ₹500-525 a share.
The Board has allotted 71.28 lakh shares at ₹510 a share to 21 anchor investors, mostly insurance companies. 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.
Meanwhile, the company earlier today got a green signal from Securities Appellate Tribunal (SAT) to launch the IPO.
According to reports, the tribunal 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.
However, the lender subsequently scrapped OFS, which minority shareholders objected saying that it needs to file DRHP afresh with SEBI with modifications.
With SAT clearance, the IPO is all set to be launched on Monday. The IPO will be a fresh issue of 1.58 crore equity shares and the Thoothukudi-based bank proposes to utilise the proceeds from the issue for augmenting its Tier-I capital base to meet future capital requirements, according to the red herring prospectus.
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.
TMB is one of the oldest private sector banks in the country with a history of almost 100 years. It offers a wide range of banking and financial services primarily to Micro, Small and Medium Enterprises (MSMEs), agricultural and retail customers.