Tamilnad Mercantile Bank IPO subscription status: Issue filled 2.86 times on last day; retail investors' quota booked 6.45 times | Details

Tamilnad Mercantile Bank IPO subscription last date: The initial public offering (IPO) of Tamilnad Mercantile Bank was subscribed 2.86 times on the last day of opening of the issue at 5 pm on Wednesday, as per NSE IPO bidding details. Against 87,12,000 shares on offer, the issue received bids for 2,49,27,476 shares on the final day, as per the same data.   

Retail investors were leading the subscription with nearly six and half per cent bidding against their reserved quota of shares. Retail Individual Investors (RIIs), Non-Institutional Investors and Qualified Institutional Buyers (QIBs) subscribed the issue 6.47 times, 2.97 times and 1.62 times respectively. 

Source: NSE

The three-day Rs 831.6-crore IPO opened for subscription on Monday. The company has fixed a price band of Rs 500-525 per share for the IPO.  

Tamilnad Mercantile Bank IPO 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.  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.    

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

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.    

Earlier, Zee Business Managing Editor Anil Singhvi had recommended to avoid the issue. 

Singhvi said the bank has strong asset quality and it also robust financials and net interest margin (NIM), however, he said the bank has been engaged in too many litigations and is always under regulator’s scrutiny.   

“Valuation-wise the IPO is not very attractive. Avoid this issue as there are many better options available among listed banks,” Singhvi said.