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Private sector lender Tamilnad Mercantile Bank Limited (TMB) is planning to raise ₹1,000 crore-₹1,300 crore before November to meet branch expansion and other expenditure via an initial public offering (IPO) and offer for sale (OFS).
“We will be filing the necessary papers with the Securities and Exchange Board of India within the next eight to 10 weeks,” said K.V. Rama Moorthy, MD & CEO.
“Overall, the post-issue dilution will be about 10%. It might be a mix of offer for sale (OFS) and fresh issue of shares,” he addd.
TMB will use the proceeds of the issue to expand branch network from the current 509 to 650. During the current fiscal, it would add 66 branches and the rest in the next fiscal. As of now, TMB does not have required licences to open new branches. It had already identified 28 locations to open new branches and done some spade work, he added.