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IPO

Tamilnad Mercantile Bank IPO subscribed 2.9x

Business Standard  

The initial public offering (IPO) of Tamilnad Mercantile Bank (TMB) garnered nearly three times subscription. The qualified institutional buyer (QIB) segment of the issue was subscribed 1.62 times, high networth individual 2.94 times and retail portion was subscribed nearly 6.5 times. Based in Thoothukudi, Tamil Nadu, TMB is one of the country's oldest private sector lenders. The bank had priced its shares at Rs 500-525 apiece in the IPO. It had allotted shares worth Rs 363 crore to anchor investors at Rs 510 apiece ahead of its IPO. TMB plans to use the IPO proceeds to augment its tier-I capital base. This will help it meet future capital requirements arising out of growth in the bank's assets. It will also help ensure regulatory compliance around capital adequacy prescribed by the Reserve Bank of India.