Tamilnad Mercantile Bank has set a price range of Rs 500-525 per share for its IPO. Earlier, the company said its IPO would open for subscription on September 5 and close on September 7.

The IPO was a new issue of 1.58 crore shares. The company will raise around Rs 831.60 crore from the case at the high end of the price range. Axis Capital, Motilal Oswal and SBI Capital Markets are the lead managers on the issue. Anchor book tenders will open on September 2. Shares will be distributed to dematerialized accounts of successful investors on September 14, and shares will be listed on September 15.

Tamilnad Mercantile Bank is one of the oldest private banks in the country, providing a range of banking and financial services primarily to micro, SME, agricultural and retail clients. The Thoothukudi (formerly Tuticorin)-based private lender plans to use the proceeds to expand its Tier 1 capital base to meet its capital requirements.

Lenders must maintain a minimum CRAR of 11.5% as of March 31, 2022. Its Tier 1 capital adequacy ratio is 20.46%, and Tier 1 capital is Rs 5,231.77 crore. The bank’s total non-performing assets stood at 1.69% in FY22, compared to 3.44% in the previous year. Net NPA was 0.95% compared to 1.98% last year. Its CASA ratio, the ratio of deposits in checking and savings accounts to total bank deposits, improved to 30.5% in FY22 from 28.52%. Total deposits rose to Rs 44,933.12 crore from Rs 40,970.42 crore, while advances rose to Rs 3,349.154 crore from Rs 3,106.96 crore in the previous year.

Full-year net profit rose 36% to Rs 821.91 crore from Rs 603.33 crore a year ago. Net interest income rose 18% to Rs 1,815.23 crore.

As of March 31, 2022, the bank had 509 branches, including 106 in rural areas, 247 in semi-urban areas, 80 in cities and 76 in major urban centres.

The last two IPOs were well-received by investors earlier this month. Silmar SGS Technology, which went public on August 25, received nearly 35 subscriptions. Airport services aggregator DreamFolks Services IPO received 56.68 subscriptions.