Private sector lender Tamilnad Mercantile Bank, which is 100 years old, has got Sebi nod to raise funds through an initial public offering (IPO).

The IPO consists of a fresh issue of 15,827,495 equity shares and an offer-for-sale of up to 12,505 equity shares by selling shareholders, according to the Draft Red Herring Prospectus (DRHP).

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 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, which also has a footprint in Gujarat, Maharashtra, Karnataka and Andhra Pradesh, offers a wide range of banking and financial services primarily to MSME, agricultural and retail customers.