Private lender Tamilnad Mercantile Bank has received approval from capital markets regulator Sebi to raise funds through an initial share sale.
The initial public offering (IPO) includes an initial public offering of 1,58,27,495 shares and an offer to sell (OFS) of up to 12,505 shares by shareholders pursuant to the Draft Red Herring Prospectus (DRHP).
The OFS consists of the sale of shares by D. Prem Palanivel, Priya Rajan, Prabhakar Mahadeo Bobde, Narasimhan Krishnamurthy, M. Malliga Rani and Subramanian Venkiteshwaran Iyer.
The bank, which submitted its preliminary IPO papers to Sebi in September 2021, received its observations on May 30 this year, a market regulator update showed on Monday.
In Sebi’s language, his observation implies his approval of the IPO.
According to the draft papers, the Tuticorin-based bank proposes to use the net proceeds from the new issuance to increase its Tier I capital base to meet its future capital needs.
The Tamilnad Mercantile Bank is one of the oldest private 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-sized enterprises (MSME), agricultural and retail customers.
As of June 30, 2021, the bank has 509 branches, of which 106 are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan areas. It has a customer base of around 4.93 million, of which 70 percent are customers who have been associated with the bank for more than five years.
On the other hand, Uma Converter has decided to withdraw its planned IPO.
The company had submitted the DRHP to the Securities and Exchange Board of India (Sebi) for the planned IPO on July 1, 2021.
However, the preliminary offering documents for the IPO were withdrawn on May 30 and the reasons for the withdrawal were not disclosed, an update with Sebi revealed.
The IPO was expected to issue new shares totaling up to Rs 36 crore.
The net proceeds from the issue were to be used to expand the company’s business by upgrading its manufacturing facility in Timba, Gujarat and repaying unsecured loans.
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