Tamil Nadu Mercantile Bank IPO subscribed 2.86 times
New Delhi:
The initial public offering (IPO) of Tamil Nadu Mercantile Bank was subscribed 2.86 times at the end of the three-day period that began on Monday. The data shows that the portion reserved for retail investors was subscribed 6.48 times.
Shares got around 83 per cent subscription on the first day. However, the shares reserved for retail investors were oversubscribed.
On Day 2 – Tuesday, overall the issues were fully subscribed.
The company had fixed a price band of Rs 500-525 per share for the IPO. At the upper end of the price band, the company will raise around Rs 831.60 crore through the issue.
Tamil Nadu Mercantile Bank IPO is a completely new issue.
The Thoothukudi (formerly Tuticorin)-based private lender is planning to use the funds raised through the IPO to increase its Tier-I capital base to meet its capital requirements.
Being one of the oldest private sector banks in India, it primarily provides a range of banking and financial services to micro, small and medium enterprises, agriculture and retail customers.
As on March 31, 2022, the total number of branches of Tamil Nadu Mercantile Bank was 509. Of these, 106 branches were in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres.
The shares are expected to be allotted to the dematerialized accounts of successful investors on September 14 and for formal listing on stock exchanges the next day.
For the financial year 2021-22, Tamil Nadu Mercantile Bank reported a net profit of Rs 821.91 crore as compared to Rs 603.33 crore in the previous year, registering a year-on-year growth of 36 per cent.
The bank’s net interest income grew 18 per cent year-on-year to Rs 1,815.23 crore for the financial year ended March 2022.
“With its strong presence in Tamil Nadu and focus on expanding presence in other strategic sectors, the bank has been continuously expanding its deposit base with focus on low cost retail CASA. Also, its strong asset quality, underwriting practices and risk management policies And with processes and consistent financial performance, we recommend “subscribing” to the issue for the long term,” brokerage Hem Securities was quoted as saying.
Tamil Nadu Mercantile Bank was incorporated in 1921 as Nadar Bank and its name was changed to Tamil Nadu Mercantile Bank in the year 1962.