Tamilnad Merc Bank IPO

Tamilnad Mercantile Bank IPO | Review

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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.

Overview

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/

Promoters

Bank is a professionally managed bank and does not have an identifiable promoter in terms of the SEBI ICDR Regulations. 

Strength & Weakness

StrengthsWeaknesses
Strong legacy & loyal customer baseRegional concentration in southern India
Strong presence in Tamil NaduContingent liabilities exceed net worth
Advances with focus on MSME, agricultural and retail segmentsReceived multiple anonymous whistleblower complaints
Consistently growing deposit baseNegative cash flows in the past
Experienced management teamMajority of business premises are leased
Strong asset qualityDependent on Key Managerial Personnel
Consistent financial performanceCompetitive Industry

Customers

Micro, small and medium enterprises (MSMEs)AgricultureRetail

Competitors

HDFC BankICICI BankAxis Bank
State Bank of IndiaBandhan BankKotak Mahindra Bank
IndusInd BankAU Small Fin BankIDFC First Bank
Bank of BarodaFederal BankRBL Bank

Company Financials

YearRevenue (in Crore)Profit (in Crore)
31-Mar-20203,635.79294.61
31-Mar-20213,992.52464.89
31-Mar-20224,253.40654.04

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

ApplicationLotSharesAmount
Minimum128Rs.14,700
Maximum13364Rs.1,91,000

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 DateSeptember 5-7, 2022
Allotment DateSeptember 12, 2022
Initiation of RefundsSeptember 13, 2022
Credit of share to Demat a/cSeptember 14, 2022
IPO Listing DateSeptember 15, 2022

Allotment Status

Link Intime – https://linkintime.co.in/mipo/ipoallotment.html

Book Lead Managers

Registrar

About the author

Shankar Awale

Hey! I am Shankar Awale an aspiring blogger with an obsession for all things of Finance. This blog is dedicated to help people to learn about Financial Knowledge in easy language.

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