Description of Share Issue:
1.Rs. 10 per equity share of face value from Rs.500 to Rs. 525 is
2. Commencement Date of Issue of Shares – Monday, September 05, 2022 and Closing Date – Wednesday, September 07, 2022
3. Bids should be called for at least 28 shares. After that you can ask for bids in multiples of 28.
Tamilnad Mercantile Bank Limited (Tamilnad Mercantile Bank Limited – the “Bank”), will launch its Initial Public Offer (IPO) on September 05, 2022. Rs. A total of 15,840,000 Equity Shares of face value 10 (the “Offer”) are being offered for sale through the new issue. The price of one equity share of Rs.10 face value ranges from Rs.500 to Rs. 525 and at least 28 shares should be bid for. After that you can ask for bids in multiples of 28.
The proceeds from this equity issue will be used to increase the Bank’s Tier-I capital to meet the Bank’s future capital requirements for growth of its assets, mainly the Bank’s loans and investment portfolio. This amount will also be utilized to maintain the capital adequacy ratio regulatory requirements prescribed by the Reserve Bank of India from time to time.
19(2)(b) of the Securities Contracts (Regulation) Regulations, 1957, as amended by Regulation 31 (“SCRR”), SEBI (Issue of Capital and Disclosure Requirements). This new issue of shares is being conducted as per the Regulations 2018 (“SEBI ICDR Regulations”). Under SEBI ICDR Regulations, Regulation 6(1), the sale of shares is taking place through Book Building Process.
Also, no more than 15% shares will be allotted to non-institutional bidders (“Non-Institutional Portion”). One-third of which will be available for allotment to non-corporate allotment bidders with application size. Rs. 200,000 and above and Rs. 1,00,000 and two-thirds of the non-institutional portion of the application amount is Rs. 1,000,000 and will be reserved for undersubscribed bidders.
In accordance with SEBI ICTR norms, shares may be allotted subject to valid bids received at or above the issue price to bidders in sub-categories other than corporate allotment.
Further, not less than 10% will be allocated to retail portion (“Retail Portion”) subject to SEBI ICDR norms. This is subject to valid bids received at or above the issue price.
All eligible investors (except anchor investors) should apply for shares through ASBA (“ASBA” – Applications Supported by Blocked Amount) mode and UPI ID mode. In this mode the money is withdrawn from the investor’s bank account only when the shares are allotted.
At the same time, the application amount is kept in the bank account, Self Certified Syndicate Banks (Self Certified Syndicate Banks – “SCSBs”) or Blocked in the UPI system. Anchor Investors are not allowed to apply under this Aspa mode.
UPI acceptance time for retail investors and NII bidders (bid up to Rs. 5,00,000) will expire on the last day of IPO i.e. September 07, 2022 at 5:00 PM.
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