Private-sector lender Tamilnad Mercantile Bank has filed papers with Securities and Exchange Board of India (Sebi) to raise funds via a public issue.
The initial public offering (IPO) comprises a fresh issue of 15,827,495 equity shares and an offer-for-sale of up to 12,505 shares by shareholders. The shares will be listed on both, the Bombay Stock Exchange (BSE) and the NAtional Stock Exchange (NSE).
The offer-for-sale consists of the sale of up to 5,000 equity shares each by D Prem Palanivel and Priya Rajan, up to 1,000 equity shares by Prabhakar Mahadeo Bobde, up to 505 equity shares by Narasimhan Krishnamurthy and up to 500 equity shares each by M Malliga Rani and Subramanian Venkiteshwaran Iyer.
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.
As of June 30, 2021, it had a customer base of around 4.93 million of which 70 percent comprised customers who were associated with the bank for more than five years.
The bank aims to utilise the proceeds generated through the IPO to augment its tier-I capital base to meet its capital requirements.
Among the book running lead managers are SBI Capital Markets, Motilal Oswal Investment Advisors, and Axis Capital.
(Edited by : Yashi Gupta)