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IPO

Tamilnad Mercantile Bank raises Rs.364-Cr from anchor investors

Economic Times  

Tuticorin-based private sector lender Tamilnad Mercantile Bank has raised funds from anchor investors before its Initial Public Offering (IPO) which opens today. The company has allocated 71.28 lakh equity shares to anchor investors at INR 510 apiece, totalling INR 363.53 crore. Societe Generale, Nomura Singapore, Bajaj Allianz Life Insurance Company, Max Life Insurance Company, Kotak Mahindra NSE 0.84 % Life Insurance Company and Moneyewise Financial Services are among the anchor investors. The IPO, which is proposed to be listed on the BSE, is a fresh issue of 1.58 crore equity share, issued at a price band of INR 500-525 per share. At the upper end of the price band, the bank is expected to mobilise INR 831.6 crore through its IPO. Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are the book running lead managers to the public issue. Tamilnad Mercantile Bank has over 500 branches and claims to service over 50 million customers. The bank will use the funds to augment its Tier-I capital base to meet future capital requirements.