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Check subscription status for the Tamilnad Mercantile Bank IPO
Data showed that shares set aside for small investors were 1.5 times oversubscribed.
New Delhi [India], September 6 (ANI): On the first day of the three-day window on Monday, 83% of Tamilnad Mercantile Bank’s initial public offerings (IPO) were subscribed.
However, data showed that shares set aside for small investors were 1.5 times oversubscribed.
For the IPO, the company had specified a price range of Rs 500–525 per share. The company would raise about Rs 831.60 crore from the offering at the top of the pricing range. The IPO of Tamilnad Mercantile Bank is an entirely new issue.
The private lender with headquarters in Thoothukudi (formerly Tuticorin) intends to use the funds raised through the IPO to increase its tier-I capital base in order to meet its capital needs.
One of India’s oldest private sector banks, it provides a variety of banking and financial services primarily to small and medium-sized businesses, agricultural clients, and retail clients.
As of March 31, 2022, there were 509 branches of Tamilnad Mercantile Bank. Of them, 106 were located in rural areas, 247 in semi-urban areas, 80 in urban areas, and 76 in metropolitan areas.
On September 14, shares are anticipated to be allocated to the dematerialized accounts of successful investors, and the formal listing on stock markets is anticipated to take place the following day.
Tamilnad Mercantile Bank reported a net profit of Rs 821.91 crore for the fiscal year 2021–2022 as opposed to Rs 603.33 crore the year prior, representing a 36% increase year over year.
Net interest income for the bank increased 18% year over year to Rs 1,815.23 crore for the fiscal year that ended in March 2022.
“Bank is steadily expanding its deposit base with an emphasis on low-cost retail CASA due to its strong position in Tamil Nadu and focus on expanding presence in other critical locations. We also advise “Subscribe” on the issue for the long term due to its outstanding asset quality, underwriting techniques, risk management policies and processes, and consistent financial performance,” brokerage Hem Securities stated in a research.
According to the brokerage, Tamil Nadu Mercantile Bank was founded as Nadar Bank in 1921 and changed its name to Tamilnad Mercantile Bank in 1962.
