Tamilnad Mercantile Bank IPO Subscribed Over 80% On Day 1

The Initial Public Offer (IPO) of Tamilnad Mercantile Bank received 83 per cent subscription on the first day on Monday.

The IPO received bids for 72,56,228 shares against 87,12,000 shares on offer, according to data available with the NSE.

The quota for Retail Individual Investors (RIIs) was subscribed 1.53 times, while that for Qualified Institutional Buyers (QIBs) received 73 per cent subscription and non institutional investors 58 per cent.

The initial public offer of 1.58 crore equity shares is in a price range of Rs 500-525 per share.

Private sector lender Tamilnad Mercantile Bank on Friday mobilised a little over Rs 363 crore from anchor investors.

The issue will conclude on September 7.

At the upper end of the price band, the bank is expected to mobilise Rs 831.6 crore through the IPO.

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

It offers a wide range of banking and financial services primarily to Micro, Small and Medium Enterprises (MSME), agricultural and retail customers.

Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are the managers to the offfer.

The company's equity shares are proposed to be listed on BSE and NSE.