Here are 5 points on Tamilnad Mercantile Bank IPO:
The bank has reserved about 75 per cent of the offer for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs) and the remaining 10 per cent for retail investors.
The net proceeds from the primary market offering will be used to augment the lender's Tier-I capital base.
On Friday, the Tamilnad Mercantile Bank faced a serious challenge from a group of investors seeking to stall the Rs 832-crore initial public offering by the lender. But, the Securities Appellate Tribunal, dismissed the appeals and allowed the issue to go through. The six foreign institutional shareholders had claimed they collectively own 23.2 per cent in the bank. But their shareholding is contested by the Reserve Bank of India (RBI).
Tamilnad Mercantile Bank 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 (MSME), agricultural and retail customers.
As of March 2022, the bank has 509 branches, of which, 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. 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.
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