TMB plans to list by 2019:

Tamilnad Mercantile Bank (TMB) is planning an initial public offering  (IPO) before 2019. “Shareholders’ issues are being resolved. Two courts have ruled on share issues related to two factions that should resolve the matter once and for all,” said S Annamalai, chairman, TMB. If all went well, the IPO was likely before 2019, he added.

 

The 96-year-old bank will list to meet Reserve Bank of India regulations. The IPO will provide an exit to some investors, mainly foreign institutional investors.

 

TMB executives said the bank’s shares were privately traded at around Rs 400 and this price could double before the IPO.

 

Foreign institutional investors (FIIs) have indicated they might dilute 5-10 per cent of their holdings, Annamalai said. FIIs hold around 20 per cent in TMB. The FII stakes are mainly held by Ramesh Vangal of Katra Holding. Disputes have erupted over transfer of shares by Katra Holding and RST Ltd to Subcontinental Equities. According to reports, Subcontinental Equities is a subsidiary of Standard Chartered Bank.
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