SAT dismisses plea opposing Tamilnad Mercantile Bank's Rs 830 cr IPO

Three shareholders of TMB had sought a stay on the share sale, aggrieved by TMB's decision to drop the OFS component

The Securities Appellate Tribunal (SAT) on Friday dismissed pleas opposing the Rs 830-crore initial public offering (IPO) of private sector lender Tamilnad Mercantile Bank (TMB).

The tribunal, which heard the matter on an urgent basis as the TMB’s IPO opens on Monday, said it didn’t see any merit in the appeals.

Three existing shareholders of TMB--Robert and Ardis James Co, East River Holdings and Swiss RE—had moved SAT seeking a stay on the share sale aggrieved by TMB’s decision to drop the offer for sale (OFS) component.

In September 2021, when TMB filed its draft red herring prospectus (DRHP) with market regulator Sebi, it intended to sell 15.83 million fresh shares and 12,505 existing shares.

However, the lender is now only issuing fresh shares in the IPO. The shareholders, who have a history of litigations with the bank, argued that change in issue structure warranted a fresh DRHP filing with Sebi.