Tamilnad Mercantile Bank Limited has come up with an initial public offer (IPO). It will open on September 05-07, 2022 at Rs.500-525 a share. The IPO issue size is around Rs.831.60 crore. The minimum bid will be for 28 shares and in its multiples thereafter.
Tamilnad Mercantile bank is one of the oldest and leading old private sector banks in India with a history of almost 100 years. The bank offers a wide range of banking and financial services primarily to micro, small and medium enterprises (“MSME”), agricultural and retail customers. It has 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centers. The bank’s customer base is approximately 4.93 million. It was incorporated as ‘Nadar Bank Limited’ in 1921 and its name was changed to ‘Tamilnad Mercantile Bank Limited’ in 1962. Bank’s deposits have grown at a healthy pace of 8.0% CAGR, while its advances grew at 8.3% CAGR.
The bank also focuses on diversifying its growth in other high growth regions of India which will help increase its network and client base. Other than Tamil Nadu, it is present in 15 other states and 4 union territories of India. Apart from Tamil Nadu, it has a sizable presence in the states of Maharashtra, Gujarat, Karnataka, and Andhra Pradesh with presence across 90 branches and 123 ATMs and 15 CRMs. The bank’s focus on quality of service and 113 nurturing long term relationship with our customers has enabled it to develop a well-recognized and trusted brand in south India, particularly in Tamil Nadu, India.
Website – https://www.tmb.in/
|Bank is a professionally managed bank and does not have an identifiable promoter in terms of the SEBI ICDR Regulations.|
Strength & Weakness
|Strong legacy & loyal customer base||Regional concentration in southern India|
|Strong presence in Tamil Nadu||Contingent liabilities exceed net worth|
|Advances with focus on MSME, agricultural and retail segments||Received multiple anonymous whistleblower complaints|
|Consistently growing deposit base||Negative cash flows in the past|
|Experienced management team||Majority of business premises are leased|
|Strong asset quality||Dependent on Key Managerial Personnel|
|Consistent financial performance||Competitive Industry|
|Micro, small and medium enterprises (MSMEs)||Agriculture||Retail|
|HDFC Bank||ICICI Bank||Axis Bank|
|State Bank of India||Bandhan Bank||Kotak Mahindra Bank|
|IndusInd Bank||AU Small Fin Bank||IDFC First Bank|
|Bank of Baroda||Federal Bank||RBL Bank|
|Year||Revenue (in Crore)||Profit (in Crore)|
Object of Issue
1) To carry out the Offer for Sale (OFS).
2) Benefits of listing the Equity Shares on the Stock Exchanges.
3) To utilize the net proceeds from the fresh issue towards augmenting its Tier–I capital base to meet its future capital requirements.
4) For meeting the expenses in relation to the Offer
Tamilnad Mercantile Bank IPO Lot Size
Tamilnad Mercantile Bank IPO details
|IPO Opening Date||September 5, 2022|
|IPO Closing Date||September 7, 2022|
|Face Value||Rs.10 per Equity Share|
|IPO Price||Rs.500-525 per share|
|Market Lot||28 shares|
|Minimum Order Quantity||28 shares|
|Listing At||NSE, BSE|
|No. of shares offered (OFS)||1,58,40,000 shares|
|Issue Size||Up to Rs. Crore|
|QIB Shares Offered||75% of the offer|
|Retail Shares Offered||15% of the offer|
|NII/HNI Shares Offered||10% of the offer|
Tamilnad Mercantile Bank IPO Timetable
|IPO Date||September 5-7, 2022|
|Allotment Date||September 12, 2022|
|Initiation of Refunds||September 13, 2022|
|Credit of share to Demat a/c||September 14, 2022|
|IPO Listing Date||September 15, 2022|
Link Intime – https://linkintime.co.in/mipo/ipoallotment.html
Book Lead Managers