Tuticorin-based Tamilnad Mercantile Bank has filed a draft red herring prospectus (DRHP) with the market regulator to raise for an initial public offer (IPO).
The lender will issue 15,840,000 equity shares with a face value of Rs 10 each. This will include a fresh issue of 15,827,495 shares and an offer for sale (OFS) of 12,505 equity shares by existing shareholders, according to the DRHP.
Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets will be the Book Running Lead Managers. Link Intime has been appointed as the registrar.
The bank will utilise the net proceeds from the fresh issue for augmenting its Tier–I capital base to meet its future capital requirements, and to meet the expenses related to the offer, the DRHP stated.
The bank is not considering any issuance or placement of equity shares by way of pre-offer placement from the date of the DRHP filing until the listing of the equity shares on the exchanges.
Tamilnad Mercantile Bank has a presence in the states of Gujarat, Maharashtra, Karnataka and Andhra Pradesh, and a strong regional concentration in southern India, and in particular, in Tamil Nadu.As of March 31, 2019, 2020 and 2021, the deposits and advances in the state of Tamil Nadu contributed to 71.62 percent, 75.93 percent, and 76.33 percent, respectively, of the total business. As of March 31, 2021, the bank said it had 4.18 million customers in the State of Tamil Nadu comprising 85.07 percent of the overall customer base.