Tamilnad Mercantile Bank gets SEBI’s nod to float IPO

Private sector lender, Tamilnad Mercantile Bank has received capital markets regulator Securities and Exchange Board of India’s (SEBI) to launch and raise funds through an initial public offering (IPO). The public issue comprises a fresh issue of 1,58,27,495 equity shares and an Offer For Sale (OFS) of up to 12,505 equity shares by shareholders, according to the Draft Red Herring Prospectus (DRHP).

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The bank, which filed its preliminary IPO papers with Sebi in September 2021, obtained its observations on May 30 this year, an update with the markets watchdog showed. In Sebi’s parlance, its observation implies its approval to float IPO.

About the Tamilnad Mercantile Bank:

• Tamilnad Mercantile Bank is one of the oldest private sector 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 Enterprises (MSME), agricultural and retail customers.
• As of June 30, 2021, the bank has 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. It has a presence in Gujarat, Maharashtra, Karnataka and Andhra Pradesh.

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