Tamilnad Mercantile Bank has filed a draft red herring prospectus (DRHP) with Securities Exchange Board of India to raise funds through an initial public offering (IPO). The Tuticorin-based lender's IPO will include a fresh issue of 15,827,495 shares and an offer for sale (OFS) of 12,505 shares by existing shareholders.
The bank has reserved about 75 per cent of the offer for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors (NIIs) and the remaining 10 per cent for retail investors. The net proceeds from the primary market offering will be used to augment the lender's tier I capital base.
Tamilnad Mercantile Bank has a major presence in Tamil Nadu, and also has branch offices in Gujarat, Maharashtra, Karnataka and Andhra Pradesh.
Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets will be the book running lead managers to the public issue, whereas Link Intime is the registrar to the issue.
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