(ANI): The initial public offerings (IPO) of Tamilnad Mercantile Bank received 83 per cent subscription on the first day of the three-day window on Monday.
Shares reserved for retail investors were, however, oversubscribed -- at around 1.5 times, data showed.
The company had set a price band of ₹500-525 per share for the IPO. On the upper end of the price band, the company will raise around ₹831.60 crore from the issue. Tamilnad Mercantile Bank's IPO is entirely a fresh issue.
The Thoothukudi (formerly Tuticorin)-based private lender plans to utilise the money raised through the IPO to augment its tier-I capital base to meet its capital requirements.
Being one of the oldest private sector banks in India, it offers a range of banking and financial services primarily to micro, small and medium enterprises, agricultural and retail customers.
Tamilnad Mercantile Bank's total number of branches stood at 509 as of March 31, 2022. Out of these 106 branches were in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres.
Shares are expected to be allotted to dematerialised accounts of successful investors on September 14, and the formal listing on the stock exchanges the next day.
For the financial year 2021-22, Tamilnad Mercantile Bank reported a net profit of ₹821.91 crore as compared to ₹603.33 crore recorded in the previous year, registering a year-on-year growth of 36 per cent.
The bank's net interest income jumped 18 per cent year-on-year to ₹1,815.23 crore for the financial year ended in March 2022.
"Bank with its strong presence in Tamil Nadu and focus to increase presence in other strategic regions is consistently growing deposit base with a focus on low-cost retail CASA. Also, with its strong asset quality, underwriting practices and risk management policies and procedures and consistent financial performance, we recommend "Subscribe" on the issue for the long term," brokerage Hem Securities said in a report.
Tamil Nadu Mercantile bank was incorporated as Nadar Bank in 1921 and its name was changed to Tamilnad Mercantile Bank in the year 1962, as per the brokerage.