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Business News/ Markets / Ipo/  Tamilnad Mercantile Bank IPO gets SEBI's nod
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Tamilnad Mercantile Bank IPO gets SEBI's nod

Tamilnad Mercantile Bank IPO comprises a fresh issue of 1,58,27,495 equity shares and an OFS of up to 12,505 equity shares by shareholders

Tamilnad Mercantile Bank gets nod from SEBI to launch its IPO (Shutterstock)Premium
Tamilnad Mercantile Bank gets nod from SEBI to launch its IPO (Shutterstock)

Private sector lender Tamilnad Mercantile Bank has received capital markets regulator Securities and Exchange Board of India's (SEBI) to launch and raise funds through an initial public offering (IPO).

The public issue comprises a fresh issue of 1,58,27,495 equity shares and an Offer For Sale (OFS) of up to 12,505 equity shares by shareholders, according to the Draft Red Herring Prospectus (DRHP).

The OFS consists sale of equity shares by D Prem Palanivel, Priya Rajan, Prabhakar Mahadeo Bobde, Narasimhan Krishnamurthy, M Malliga Rani and Subramanian Venkiteshwaran Iyer.

The bank, which filed its preliminary IPO papers with Sebi in September 2021, obtained its observations on May 30 this year, an update with the markets watchdog showed on Monday. In Sebi's parlance, its observation implies its approval to float IPO.

The Tuticorin-based bank proposes to utilise the net proceeds from the fresh issue towards augmenting its Tier-I capital base to meet its future capital requirements.

Tamilnad Mercantile Bank is one of the oldest private sector banks in the country, with a history of almost 100 years. It offers a wide range of banking and financial services primarily to Micro, Small and Medium Enterprises (MSME), agricultural and retail customers.

As of June 30, 2021, the bank has 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. It has a presence in Gujarat, Maharashtra, Karnataka and Andhra Pradesh.

The lender had filed a draft red herring prospectus (DRHP) with SEBI for its initial share sale in September last year. Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are the lead managers to the issue.

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Published: 07 Jun 2022, 12:10 PM IST
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