The OFS consists sale of equity shares by D Prem Palanivel, Priya Rajan, Prabhakar Mahadeo Bobde, Narasimhan Krishnamurthy, M Malliga Rani and Subramanian Venkiteshwaran Iyer.
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 on Monday.
In Sebi’s parlance, its observation implies its approval to float IPO.
Going by the draft papers, the Tuticorin-based bank proposes to utilise the net proceeds from the fresh issue towards augmenting its Tier-I capital base to meet its future capital requirements.
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 customer base of around 4.93 million of which 70 per cent comprises customers who are associated with the bank for more than five years.
On the other hand, Uma Converter has decided to withdraw its proposed IPO.
The company had filed the DRHP for the proposed IPO on July 1, 2021 with the Securities and Exchange Board of India (Sebi).
However, the draft offer documents for the IPO have been withdrawn on May 30 and the reasons for the withdrawal have not been disclosed, an update with Sebi showed.
The IPO was slated to issue fresh equity shares aggregating up to Rs 36 crore.
The net proceeds of the issue was to be used for expansion of the business of the company by upgrading its manufacturing facility situated at Timba, Gujarat and repayment of unsecured loans