Tamilnad Mercantile Bank IPO: Tamilnad Mercantile Bank's share sale via initial public offering (IPO) will open on September 5 and end on September 7. The south India-based private bank is one of India's oldest private sector lender in the country with presence in Indian markets for over 100 years. Tamilnad Mercantile Bank is planning to raise Rs 832 crore through IPO by selling 1.58 crore shares of face value of Rs 10 each.
Tamilnad Mercantile Bank IPO: Price Band, GMP, Issue SIze, Lot Size, Bidding Details
Tamilnad Mercantile Bank is planning to sell shares in price band of Rs 500-525 per share and retail investors can invest in minimum one lot of 28 shares up to maximum of 13 lots. At the upper end of price band, one lot of Tamilnad Mercantile Bank shares will cost Rs 14,700.
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The Tuticorin-based lender, which does not have any identified promoter/promoter group as it is widely held by over 22,000 investors/shareholders -- including half a dozen foreign institutional investors who collectively own 23.2 per cent in the bank.
The six foreign investors are Robert & Ardis James Company (4.95 per cent), Starship Equity Holdings (4.72 per cent), Subcontinental Equities (4.64 per cent), East River Holdings (3.72 per cent), Swiss Re Investors Mauritius (1.90 per cent) and FI Invest Mauritius (1.48 per cent), according to the final IPO filing.
These shareholders will have to retain their holdings for the next six months after the IPO.
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Tamilnad Mercantile Bank Issue Size
Tamilnad Mercantile Bank is planning to raise Rs 832 crore and the IPO is purely fresh issue of shares. The bank will utilise the proceeds from the IPO will be used to augment tier-I capital base to meet future capital requirements, meet offer issue expenses and to receive the benefits of listing the shares on the stock exchanges.
Tamilnad Mercantile Bank Financials
The bank reported a net income of Rs 8,212 crore in fiscal 2022 on an income of Rs 4,656.4 crore, which stood at Rs 603.3 crore and Rs 4,253 crore in FY21, respectively, and Rs 407.6 crore and Rs 3,992.5 crore in FY20.
The bank has reserved 75 per cent of the issue for qualified institutional investors, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
The bank operates 509 branches of which 369 are in the home state of Tamil Nadu, which fetches over 70 per cent of business and the rest of the branches are spread across 15 states and four Union territories.
Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers for the public issue. The equity shares will be formally listed on the BSE on September 15.
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