26 July 2024
The initial public offering (IPO) of Tamilnad Mercantile Bank Ltd. will open on September 5 to raise up to ₹832 crore, the bank said.
The bank is offering 1,58,40,000 fresh shares with a face value of ₹ 10 each at a price band of ₹500 to ₹ 525 per share. Bids can be made for a minimum of 28 shares and in multiples of 28 shares thereafter. At present, over 72% of the bank’s 509 branches are in Tamil Nadu, and in order to diversify its presence following the IPO, 75% of these new branches will be opened in other states, the person said on the condition of anonymity.
The roots of the curbs on TMB date back to January 2016, when its shareholders decided to raise its authorized share capital to ₹500 crore. The RBI noted in June 2019 that the bank did not raise its subscribed capital to at least half of the authorized capital as required, prompting it to impose restrictions, including on opening new branches. While some curbs were removed in March 2021, the one on branch expansion remains.
The person cited earlier said TMB is also interested in opening digital banking units (DBUs), and its branch opening strategy will take this into account. Finance minister Nirmala Sitharaman had announced in her budget speech in February that to ensure the benefits of digital banking reach every nook and corner of the country, 75 DBUs will be set up in 75 districts.