SAT gives go-ahead to TMB IPO | The Financial Express

SAT gives go-ahead to TMB IPO

According to the draft papers filed by the bank, Robert and Ardis James Company held 4.95% stake, East River Holdings held 3.72%, Swiss Re Investors (Mauritius) held 3.56% and FI Investments (Mauritius) held 1.90% stake in the bank.

SAT gives go-ahead to TMB IPO
The bank’s original IPO proposal consisted of a fresh issue of up to 15.83 million shares and an offer- for-sale (OFS) of up to 12,505 shares.

The Securities Appeleate Tribunal (SAT) on Friday rejected the appeals filed by some shareholders of Tamilnad Mercantile Bank and also granted a go-ahead to the lender’s initial public offering (IPO). The bank is set to start the book-building process for the proposed listing from Monday.

While the tribunal, headed by Justice Tarun Agarwala, has rejected the shareholders’ appeals, a detailed copy of the order is awaited, two sources associated with the case said.

Six shareholders of the bank – Swiss Re Investors (Mauritius), FI Investments (Mauritius), Kamehameha (Mauritius), Cuna Group (Mauritius), Robert and Ardis James Company and East River Holdings – in January moved the Bombay High Court, seeking directions to Sebi to accept the bank’s DRHP only if the shareholders are also allowed to offer their shares for sale as part of the offer.

According to the draft papers filed by the bank, Robert and Ardis James Company held 4.95% stake, East River Holdings held 3.72%, Swiss Re Investors (Mauritius) held 3.56% and FI Investments (Mauritius) held 1.90% stake in the bank. The shareholders had alternatively sought directions from the high court to restrain Sebi from accepting the bank’s draft red herring prospectus or approving the offer made by the bank through the IPO.

The bank’s original IPO proposal consisted of a fresh issue of up to 15.83 million shares and an offer- for sale (OFS) of up to 12,505 shares. However, the bank later dropped the OFS from the listing process, which was approved by Sebi.

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