Tamilnad Mercantile Bank IPO: DRHP paper filed with SEBI for Rs 1000 cr IPO

Southern India-based Tamilnad Mercantile Bank (TMB) on Monday filed draft red herring prospectus (DRHP) with the Securities and Exchanges Board of India (SEBI), a capital market regulator, to raise at least Rs 1000 crore funds through an initial public offering (IPO).

The bank will issue 1,58,40,000 shares of the face value of Rs 10 each, of which 1,58,27,495 fresh equity shares and 12,505 shares will be offloaded by existing shareholders through offer-for sale (OFS), the preliminary paper filed with the market regulator reads.

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D. Prem Palanivel (up to 5,000 equity shares), Priya Rajan (up to 5,000 equity shares), Prabhakar Mahadeo Bobde (up to 1,000 equity shares), Narasimhan Krishnamurthy (up to 505 equity shares), M. Malliga Rani (up to 500 equity shares) and Subramanian Venkiteshwaran Iyer (up to 500 equity shares) are the investors participating in the offer for sale, the DRHP paper mentions.

At least one-third of the net offer is reserved for qualified institutional buyers (QIBs), while 15 per cent allocated to non-institutional investors (NIIs) and the remaining 10 per cent to retail bidders.

The bank proposes to utilize the net proceeds from the fresh issue towards augmenting its Tier–I capital base to meet its future capital requirements. Further, the gross proceeds from the issue will also be used towards meeting the expenses in relation to the offer.

The book-running lead managers for the IPO appointed are Axis Capital, Motilal Oswal Investment Advisors, and SBI Capital Markets. Link Intime India has been appointed as the registrar for the issue.

In the financial year 2020-2021, the net profit of TMB grew by 48 per cent to Rs 603 crore from Rs 408 crore in the year ago period, while the deposits grew by 11 per cent to Rs 40,970 crore.

Our Bank is a professionally managed bank and does not have an identifiable promoter or promoter group in terms of SEBI ICDR Regulations and the Companies Act, 2013, TMB said in the DRHP paper.