Tamilnad Mercantile Bank files Draft Red Herring Prospectus

The bank has filed DRHP for a premium initial public offer (IPO) of up to 15,840,000 equity shares of face value of Rs 10 each - fresh issue of 15,827,495 equity shares and an offer for sale of 12,505 equity shares by six equity shareholders.

The offer will constitute 10 per cent of the post-offer paid-up equity share capital. Currently, TMB has an equity base of about Rs 142.51 crore.

According to DRHP, the allotment of 15,132,000 equity shares as bonus issue in the ratio of 1:500 to 41 members is held in abeyance due to reasons including, among others death of the members, outstanding legal proceedings, discrepancies in transfer deed and non-registration of instrument of transfers by TMB. With regard to the 1:500 bonus issue, TMB had paid a penalty of Rs 6 cr for issuing bonus to six non-resident entities holding the Unacknowledged Shares which had been the subject matter of the RBI Order.