Tamilnad Mercantile Bank IPO subscription status: Issue fully subscribed! Retail investors' quota filled over 2x | Details

Tamilnad Mercantile Bank IPO was fully subscribed on the second day of opening of the issue on Tuesday. Against 87,12,000 shares on offer, bids were received for 89,26,092 shares, showed NSE data. Retail investors were leading the subscription with over 2x subscription. Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) portions were subscribed 0.84% and 0.73% respectively.  

The initial public offerings opened for subscription on Monday. The three-day Rs 831.6 crore IPO will conclude on September 7. The IPO, with a price band of Rs 500-525 per share, is a fresh issue of 1.58 crore equity shares. As much as 75 per cent of the issue has been reserved for qualified institutional investors, 15 per cent for the non-institutional investors and the remaining 10 per cent for retail investors.  

Source: NSE

The Tuticorin-based bank proposes to utilise the proceeds from the issue for augmenting its Tier-I capital base to meet future capital requirements.  

Axis Capital Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited are the book running lead managers to the public issue. The equity shares are proposed to be listed on BSE and NSE. 

The company has decided to allocate 71.28 lakh equity shares to anchor investors at Rs 510 apiece, aggregating the transaction size to Rs 363.53 crore, according to a circular uploaded on the BSE website.  

One of the oldest private sector banks in the country with a history of almost 100 years, Tamilnad Mercantile Bank offers a wide range of banking and financial services primarily to Micro, Small and Medium Enterprises (MSME), agricultural and retail customers.  

As per the company, the bank has 509 branches, of which, 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres as of March 2022. It had a customer base of around 5.08 million as of March 2022. Of which, nearly 80 per cent comprised customers who were associated with the bank for more than five years.