Tuesday, June 28, 2022
No menu items!
    HomeBusinessTamilnad Mercantile Bank gets SEBI’s nod to float IPO  

    Tamilnad Mercantile Bank gets SEBI’s nod to float IPO  


    Money & Banking

    Our Bureau | Chennai, June 6 | Updated on: Jun 06, 2022

    Proceeds to be used for augmenting Tier-I capital base

    The Tuticorin (Tamil Nadu)-based Tamilnad Mercantile Bank Ltd, has received market regulator SEBI’s approval to raise funds through an initial public offering (IPO).  

    The proposed IPO comprises a fresh issue of 1.582 crore shares and an offer for sale of 12,505 equity shares by D Prem Palanivel, Priya Rajan, Prabhakar Mahadeo Bobde, Narasimhan Krishnamurthy, M Malliga Rani and  Subramanian Venkiteshwaran Iyer. The offer will constitute 10 per cent of the post-offer paid-up equity share capital.  

    The private sector lender , which filed its draft red herring prospectus with SEBI in September 2021, obtained its observations on May 30, according to an update. In SEBI’s parlance, its observation indicates approval for launching the IPO.

    Plans to raise ₹1,000 crore

    The bank had indicated the proceeds from the IPO will be used for augmenting its Tier-I capital base.  It had said that it was planning to mobilise more than ₹1,000 crore from the public issue.

    As of March 31, 2022, the bank’s total income stood at ₹4,656 crore, up 9.48 per cent as compared to ₹4,253 crore in FY21. It posted a net profit of ₹822 crore for FY 2022 as compared to ₹603 crore, an increase of 36.23 per cent. The total business of the bank stood at ₹78,424.65 crore (₹72,040.02 crore).

    Net NPA was at 0.95 per cent (1.98 per cent in FY21), while Gross NPA stood at 1.69 per cent (3.44 per cent).

    Published on June 06, 2022

    You May Also Like

    Recommended for you

    Related articles


    Please enter your comment!
    Please enter your name here

    Stay Connected


    Latest posts