Tamilnad Mercantile Bank IPO’s Threat averted
Foreign investors had petitioned to stop the IPO of the hundred-year-old Tamilnad Mercantile Bank. The IPO of Tamil Nadu Mercantile Bank will open on 5 September 2022 and will be open for bidding till 7 September 2022.
The Securities Appellate Tribunal (SAT) has dismissed the petition against the IPO of Tamilnad Mercantile Bank. Foreign investors had petitioned to stop the IPO of this hundred-year-old bank.
Six foreign institutional investor shareholders of this private sector bank had filed a petition before SAT to stop the Rs 832 crore IPO. All these members collectively hold 23.2 percent stake in the bank.
Of the six foreign investors, Robert & Ardis Gems Company holds 4.95 percent, Starship Equity Holdings 4.72 percent, Subcontinental Equity 4.64 percent, East River Holdings 3.72 percent, Swiss Re Investors Mauritius 1.90 percent and FI Invest Mauritius 1.48 percent. share is.
According to sources, these shareholders had earlier filed a writ petition in the Bombay High Court seeking a direction to SEBI to include their stake in the sale of shares to the bank. However, the bank’s final IPO document does not offer an offer for sale (OFS) of shares and only 10 per cent fresh equity shares of face value of Rs 10 will be put up for sale.
Tamilnad Mercantile Bank ipo Raises Rs 363 Cr
Meanwhile, the bank on Friday said it has raised a little over Rs 363 crore from anchor investors ahead of its IPO. As per the information available on the BSE website, the company has decided to allot 71.28 lakh equity shares at a price of Rs 510 to anchor investors, which works out to Rs 363.53 crore.
Tamilnad Mercantile IPO to open on 5th September
The IPO of Tamil Nadu Mercantile Bank will open on 5 September 2022 and will be open for bidding till 7 September 2022. As per available information in the Red Herring Prospectus (RHP) of the IPO, one of the oldest private sector banks in India aims to raise ₹831.60 crore from this IPO. The price range for the IPO has been fixed at Rs 500-525 per share.
Meanwhile, Tamilnad Mercantile Bank shares are trading well in the gray market ahead of the subscription opening date. According to market experts, shares of Tamil Nadu Mercantile Bank are available at a premium of Rs 38 in the gray market today.
