Tamilnad Mercantile Financial Institution Shareholders Vote For IPO, Reveals Madras HC

The Madras High Court (HC) has revealed that Tamilnad Mercantile Bank’s (TMB) initial public offering (IPO) resolution has been passed, including the election of its directors. All the resolutions — submitted to the court in a sealed cover — were passed with more than one third of the votes polled.

The bank has, since 2016, been seeking the nod of its shareholders, who are largely from the Nadar community, to go public, but a majority has been rejecting the proposal.

At the 93rd annual general meeting (AGM) held in 2016, when the proposal for an IPO was placed before the shareholders for the first time, it was declined.

The lender held four AGMs between 2015-16 and 2018-19 (94th AGM to 97th AGM), and the one held last month was under the supervision of the Madras HC. The voting results were given to the court in a sealed cover.

While the formal order of the court was not uploaded, it dictated the voting results wherein it was stated nearly 75 per cent of the shareholders approved the IPO.

The bank’s former chairman and director S Annamalai and others have confirmed the development and expect TMB to be listed within the next 12 months.

It may be recalled that the Reserve Bank of India has been asking the bank to be listed.

According to Annamalai, the IPO will also help unlock shareholders’ value. According to some shareholders, TMB’s share is trading at around Rs 400 per share outside the public market.

The IPO will also help enhance visibility, aid customer acquisition, provide liquidity to existing shareholders, increase the ability to raise affordable capital faster, and enhance brand and corporate value. The IPO will also strengthen the bank’s capital adequacy ratio (CAR) and help it to expand its branches.

In 2019-20 (FY20), the bank had posted a net profit of Rs 407.56 crore (Rs 258.58 crore in 2018-19, or FY19). Its total business stood at Rs 64,540.79 crore, against Rs 61,624.59 crore. Gross non-performing assets (NPAs) dropped to 3.62 per cent in FY20, from 4.32 per cent in FY19, while net NPAs dropped 1.8 per cent, from 2.4 per cent. The CAR (Basel III) was 16.74 per cent in FY20, compared to 16.17 per cent.

The bank has been mired in ownership tussles ever since foreign investors (FIs) bought stake from businessman C Sivasankaran, who had acquired the stake from Essar Group.

The transaction to FIs had also attracted show-cause notice from the Enforcement Directorate to TMB and Standard Chartered Bank, among others, for contravention of the Foreign Exchange Management Act (FEMA), 1999. The battle to control the bank still continues among three different groups from the community.

Sandip Ginodia , CEO

ALTIUS INVESTECH PVT LTD

We deal in over 60 unlisted companies with 15 years of experience

For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Email : ginodiasandip1@gmail.com

Reliance's JioMart is averaging half a million orders per day; WhatsApp driving growth

JioMart , Reliance's online-to-offline commerce platform that launched in May , has scaled up rapidly, riding on the pandemic-fuelled digital acceleration. The service, which went live in 200 cities across India, is currently processing an average of 500,000 orders per day. " We can go even higher on peak days", Jio Platforms CEO Kiran Thomas revealed at the Facebook for Fuel India 2020 event. He said, "JioMart is empowering millions of kiranas and small merchants through the simple and secure platform of WhatsApp, and linking them to Reliance Retail's pan-India supply chain. We expect to grow manifold in future, and are optimistic about enabling new cohorts of users and making it easier for them to shop for daily essentials." "Customers are transacting seamlessly on JioMart and the conversational nature of the service enabled by WhatsApp has made people adapt to it intuitively," he added. Reliance also stated that it will continue t

TCS merger with TCS e serve

The board of Tata Consultancy Services (TCS) in its meeting on 18 October 2012 has approved the composite scheme of arrangement between TCS, TCS e-Serve (e-Serve) and TCS e-Serve International (TEIL). The composite scheme of arrangement provides for merger of e-Serve into TCS and demerger of TEIL's special economic zone (SEZ) undertaking(s) to TCS. The appointed date proposed for this scheme is 01 April 2013. TCS holds 96.26% of the paid up equity share capital of e-Serve. TEIL is a wholly owned subsidiary of e-Serve. As per the terms of the scheme of arrangement, shareholders of e-Serve (other than TCS) will receive 13 equity shares of Re 1 each of TCS for every 4 equity shares of Rs 10 each of e-Serve held by them. The board has approved the scheme of merger of Computational Research Laboratories (CRL) and Retail FullServe (RFL) with TCS. The proposed appointed date for the merger of CRL is 01 October 2012 and for the merger of RFL is 01 April 2012. Computational Res

Stock broker SMC Global files for IPO

F inancial services company SMC Global Securities has filed draft red herring prospectus with SEBI for public issue of 1,58,67,380 equity shares of face value of Rs 2 each. The issue comprises a fresh issue of 79,33,690 equity shares by the company and an offer for sale of 79,33,690 shares by Millennium India Acquisition Company Inc. As of September 30, 2012, "We service our broking clients through a network of 43 branches and 2,521 registered sub-brokers and authorized persons spread in more than 500 cities and towns. We have also established an office in Dubai for brokerage and trading activities in that region," the company said. SMC has reported a loss of Rs 0.42 crore and total revenues of Rs 292.24 crore in the year ended March 31, 2012. "The proceeds of the fresh issue shall be utilised for margin maintenance with stock exchanges; part repayment of term loan; investments into subsidiary, SMC Comtrade; and general corporate purposes," according to p

Abhishek Securities

Search This Blog