Tamilnad Mercantile Bank Limited (TMB), one of the oldest and leading old private sector banks in India with a history of almost 100 years, filed its DRHP with SEBI.
TMB offers a wide range of banking and financial services primarily to micro, small and medium enterprises (MSME), agricultural and retail customers (“RAM”). As of June 30, 2021, the Bank have 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. Their overall customer base is approximately 4.93 million as of June 30, 2021, and 3.45 million or 69.96% of customers have been associated with the Bank for a period of more than five years and have contributed to Rs275,619 million or 67.02% to TMB’s deposits and Rs179,638.99 million or 57.56% to advances portfolios as of June 2021.
As per the CRISIL Report, TMB had the second highest Net Profit for Fiscal 2021 amongst its Peers, and their Return on Assets was also higher at 1.3% compared to a median 0.7% for Peers for Fiscal 2021.
The Initial Public Offer (IPO) consists of initial public offering of up to 15,840,000 equity shares of face value of Rs10 each (“Equity Shares”) of Tamilnad Mercantile Bank Limited comprising a fresh issue of 15,827,495 equity shares (the “Fresh Issue”).
The offer comprises of up to 12,505 equity shares, consisting an offer for sale of up to 5,000 equity shares D. Prem Palanivel, up to 5,000 equity shares by Priya Rajan, up to 1,000 equity shares by Prabhakar Mahadeo Bobde, up to 505 equity shares by Narasimhan Krishnamurthy , up to 500 equity shares by M. Malliga Rani and up to 500 equity shares Subramanian Venkiteshwaran Iyer (collectively, the “Selling Shareholders”). The offer will constitute 10.00% of the post-offer paid-up equity share capital.
The Company proposes to utilise the Net Proceeds towards towards augmenting its Tier–I capital base to meet its future capital requirements.
The Book Running Lead Managers to the offer are Axis Capital Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited.
The equity shares are proposed to be listed on BSE and NSE.
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( With inputs from indiainfoline)