IPO for Tamilnad Mercantile Bank begins the next week

The subscription period will begin on September 5 and conclude on September 7 at a price band of Rs 500-525 apiece. 

Tamilnad Mercantile Bank, a private lender, will begin accepting subscriptions for its initial public offering (IPO) next week. The subscription period will begin on September 5 and conclude on September 7 at a price band of Rs 500-525 apiece.

Tamilnad Mercantile Bank, based in Tuticorin, received approval from the Securities Exchange Board of India (SEBI) in June to raise funds through an initial public offering. According to an update with the markets watchdog, the bank, which filed its preliminary IPO papers with SEBI in September 2021, received its observations on May 30 this year. SEBI’s observation implies its approval to launch an IPO.

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The IPO is a completely fresh issue of up to 1.58 crore shares with a face value of Rs 10 each, totalling Rs 831.6 crore. Axis Capital, Motilal Oswal, and SBI Capital Markets are among the issue’s lead managers. The issue’s registrar is Link Intime India. Tamilnad Mercantile Bank will be listed alongside City Union Bank, CSB Bank, DCB Bank, Federal Bank, Karur Vysya Bank, Karnataka Bank, RBL Bank, and South Indian Bank.

With a history of nearly 100 years, Tamilnad Mercantile Bank is one of the country’s oldest private sector banks. It provides a wide range of banking and financial services to customers primarily in the Micro, Small, and Medium Enterprises (MSME), agricultural, and retail sectors.

As of June 30, 2021, the bank had 509 branches, with 106 in rural areas, 247 in semi-urban areas, 80 in urban areas, and 76 in metropolitan areas. It has a customer base of approximately 4.93 million people, 70% of whom have been with the bank for more than five years.