Tuesday saw a lacklustre stock market debut for shares of Tamilnad Mercantile Bank, which listed at a discount of more than 3% from its IPO issue price of 510 per share, trading at 495 per share on the NSE.
On the final day of subscriptions, the Tamilnad Mercantile Bank IPO was subscribed 2.86 times. In contrast to the 87,12,000 shares that were offered, bids for 2,49,39,292 shares totaling 831.6 crore were received.
The non-institutional investor quota was subscribed 2.94 times, compared to 6.48 times for retail individual investors. For the IPO, the category for qualified institutional buyers (QIBs) received 1.62 times as much subscription.
The fixed price range per share was between 500 and 525. Prior to its share sale, the Tuticorin-based company raised just over 363 crore from anchor investors. An additional 1.58 crore equity shares were issued in the Tamilnad Mercantile Bank IPO. The bank had previously stated that it intended to use the issue’s proceeds to increase its Tier-I capital base in order to satisfy future capital requirements.
Having been founded in 1921 as Nadar Bank, Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks, with a history spanning 101 years. The Tuticorin-based bank has 509 branches, 369 of which are in Tamil Nadu, which accounts for more than 70% of business, and the remaining branches are dispersed across 15 states and four union territories. The bank primarily serves micro, small, and medium-sized enterprises, agricultural, and retail customers.
