Tamilnad Mercantile Bank Ltd filed a draft Red Hering prospectus with the Indian Securities and Exchange Committee on Monday to raise funds through an IPO. The IPO includes a new issue of up to 15.83 million shares and an offer for sale (OFS) of up to 12,505 shares by existing promoters and shareholders.
The OFS consists of up to 5,000 shares each of D. Prem Palanivel and Priya Rajan, up to 1,000 shares of Prabhakar Mahadeo Bobde, up to 505 shares of Narsimhan Krishnamurthy and 500 shares each of M. Malliga Rani and Subramanian Venkiteshwaran Iyer.
Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are the lead managers of the issue.
The proceeds from the issue will be used to increase its Tier I capital base to meet future capital requirements.
As of March 2021, the lender must adhere to a CRAR of at least 10.875%. The Tier I capital adequacy ratio was 17.93%.
In FY21, the bank’s gross non-performing assets were 3.44% compared to 3.62% in the previous year. The net NPAs were 1.98% compared to 1.8% in the previous year. The CASA rate improved from 25.85% to 28.52%.
The bank has 4.18 million customers in Tamil Nadu, which is 85.07% of its total customer base.
It has a presence in Gujarat, Maharashtra, Karnataka and Andhra Pradesh.
In June, the lender had 509 branches, of which 106 were in rural areas, 247 in semi-urban areas, 80 in urban areas and 76 in metropolitan areas. The total customer base is around 4.93 million.
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