Home / Markets / Ipo /  Tamilnad Mercantile Bank files IPO papers

Tamilnad Mercantile Bank Ltd on Monday filed a draft red herring prospectus with the Securities and Exchange Board of India to raise money in an initial public offering. The IPO comprises a fresh issue of up to 15.83 million shares and an offer for sale (OFS) of up to 12,505 shares by existing promoters and shareholders.

The OFS consists of up to 5,000 shares each by D. Prem Palanivel and Priya Rajan, up to 1,000 shares by Prabhakar Mahadeo Bobde, up to 505 shares by Narsimhan Krishnamurthy and 500 shares each by M. Malliga Rani and Subramanian Venkiteshwaran Iyer.

Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are the lead managers to the issue.

The proceeds from the issue will be used to augment its tier I capital base to meet future capital requirements.

As of March 2021, the lender is required to maintain a minimum CRAR of 10.875%. Its tier I capital adequacy ratio was at 17.93%.

For FY21, the bank’s gross non-performing assets were at 3.44%, against 3.62% in the previous year. Net NPAs were at 1.98% versus 1.8% last year. Its CASA ratio improved to 28.52% from 25.85%.

The bank has 4.18 million customers in Tamil Nadu comprising 85.07% of its overall customer base.

It has a presence in Gujarat, Maharashtra, Karnataka and Andhra Pradesh.

As of June, the lender had 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. Its overall customer base is approximately 4.93 million.

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