Chennai, September 15
Thoothukudi-based Tamilnad Mercantile Bank on Thursday said the company would focus on creating a strong ‘phygital’ platform and undertaking branch expansion in the immediate term.
The old private sector bank’s shares made a muted debut on the NSE, but it got listed at the issue price of ₹510 per share on the BSE. Post listing, the stock hit an intra-day low of ₹484 and a high of ₹519. The stock closed at ₹508.45 on the BSE.
“We mobilised about ₹808 crore through our IPO. In the immediate term, we will stay focussed on RAM (Retail, Agriculture, and MSME) segment business. We will also focus on creating a phygital model for the next stage of growth. While the bank is known for its relationships with customers in physical mode, we will focus on providing digital channels for the new-age customers. We will also go for branch expansion. We will soon announce the details, as we will be submitting our strategic expansion plan to the Board,” said S Krishnan, who took charge as the MD and CEO of the bank last week.
Earlier, the public issue was subscribed 2.86 times. The company, which came out with a price band of ₹500-525 a share, fixed the IPO price at ₹510.
While the portion for retail individual investors was subscribed 6.48 times, non-institutional investors and QIBs’ quota received bids 2.94 times and 1.68 times.
Anchor investors
Ahead of the IPO, the private-sector lender had raised ₹363.53 crore from anchor investors, and large insurance companies. Among the marquee investors included 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.
The bank proposes to utilise the proceeds to augment its core capital.