Tamilnad Mercantile Bank Limited initial public offering to open on September 05, 2022

TAMILNAD MERCANTILE BANK LIMITED INITIAL PUBLIC OFFERING TO OPEN ON SEPTEMBER 05, 2022

· Price Band fixed at ₹ 500 to ₹ 525 per equity share of face value of ₹ 10 each (“Equity Shares”)

· Bid /Offer Opening Date – Monday, September 05, 2022 and Bid/ Offer Closing Date – Wednesday, September 07, 2022

· The Floor Price is 50.00 times the face value of the Equity Shares and The Cap Price is 52.50 times the face value of Equity Shares

· Bids can be made for a minimum of 28 Equity Shares and in multiples of 28 Equity Shares thereafter

Mumbai, August 30, 2022: Tamilnad Mercantile Bank Limited (the “Bank”) will open its Initial Public Offering on Monday September 05, 2022.

The total offer size of up to 15,840,000 Equity Shares of face value of ₹ 10 each comprising of fresh issue of up to 15,840,000 Equity Shares (the “Offer”).

The Price Band of the Offer has been fixed at ₹ 500 to ₹ 525 per Equity Share of face value ₹ 10 each. Bids can be made for a minimum of 28 Equity Shares and in multiples of 28 Equity Shares thereafter.

Bank proposes to utilise net proceeds of the fresh issue towards augmentation of Bank’s Tier-I capital base to meet Bank’s future capital requirements which are expected to arise out of growth in the Bank’s assets, primarily the Bank’s loans/advances and investment portfolio and to ensure compliance with regulatory requirements on capital adequacy prescribed by the Reserve Bank of India from time to time.

The Offer is being made through the book building process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(2) of the SEBI ICDR Regulations, wherein not less than 75 % of the Offer shall be allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”, the “QIB Portion”), provided that the Bank may, in consultation with the Book Running Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion.

Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs.

Further, not more than 15% of the Offer shall be available for allocation to Non-Institutional Bidders (“Non-Institutional Portion”) of which one-third of the Non-Institutional Portion shall be available for allocation to Bidders with an application size of more than ₹ 200,000 and up to ₹ 1,000,000 and two-thirds of the Non-Institutional Portion shall be available for allocation to Bidders with an application size of more than ₹ 1,000,000 and under-subscription in either of these two sub-categories of Non-Institutional Portion may be allocated to Bidders in the other sub-category of Non-Institutional Portion in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price.

Further, not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders (“Retail Portion”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective ASBA accounts, and UPI ID in case of UPI Bidders using the UPI Mechanism, if applicable, in which the corresponding Bid Amounts will be blocked by the SCSBs or by the Sponsor Bank under the UPI Mechanism, as the case may be, to the extent of respective Bid Amounts. Anchor Investors are not permitted to participate in the Offer through the ASBA process.

The UPI Mandate acceptance time for Retail and NII bidders (bids up to ₹ 5,00,000) shall expire at 5:00 PM on the closing day of the IPO i.e., September 07, 2022.

For details, see “The Offer Procedure” beginning on page 326 of the Red Herring Prospectus.

The Equity Shares offered through this Red Herring Prospectus are proposed to be listed on BSE and NSE.

Axis Capital Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited are the Book Running Lead Managers (“BRLMs”) to the issue.