Incorporated in 1921, Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks in India. It offers an array of banking and financial services to retail customers, micro, small, and medium enterprises (MSMEs), and more. TMB has a strong portfolio of advances and deposits from a diversified customer base including retail customers, agricultural customers, and MSMEs.
As of March 31, 2022, the bank has a strong branch network of 509 branches and a total customer base of 5.08 million. TMB has a significant market presence in the state of Tamil Nadu with 369 branches, and is also present in 15 other states and 4 union territories of India.
Strengths
- Long-term track record with almost 100 years of history.
- Strong presence in Tamil Nadu and consistent focus to expand presence in strategic regions.
- Diversified and loyal customer base i.e., retail, MSMEs, and agricultural.
- Consistently growing customer deposit base with a focus on low-cost retail CASA.
- Proven financial performance track record.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves and Surplus |
|---|---|---|---|---|---|
| 31-Mar-20 | 42758.8 | 3992.53 | 464.89 | 3979.65 | 3837.14 |
| 31-Mar-21 | 47527.17 | 4253.4 | 654.04 | 4579.98 | 4437.47 |
| 31-Mar-22 | 52858.49 | 4656.44 | 901.9 | 5335.71 | 5193.2 |
| Amount in ₹ Crore |
Objects of the Issue
The net proceeds from the issue will be utilized for the following purposes;
- To augment tier-I capital base to meet future capital requirements.
- Meet offer issue expenses.
- To receive the benefits of listing the shares on the stock exchanges.
Tamilnad Mercantile Bank IPO Details
| Tamilnad Mercantile Bank IPO Date | Sep 5, 2022 to Sep 7, 2022 |
| Tamilnad Mercantile Bank IPO Face Value | ₹10 per share |
| Tamilnad Mercantile Bank IPO Price | ₹500 to ₹525 per share |
| Tamilnad Mercantile Bank IPO Lot Size | 28 Shares |
| Issue Size | 15,840,000 shares of ₹10 (aggregating up to ₹831.60 Cr) |
| Fresh Issue | 15,840,000 shares of ₹10 (aggregating up to ₹[.] Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not less than 75% of the Net Offer |
| NII (HNI) Shares Offered | Not more than 15% of the Net Offer |
| Retail Shares Offered | Not more than 10% of the Net Offer |
| Company Promoters | TMB is a professionally managed bank and does not have an identifiable promoters. |
Tamilnad Mercantile Bank IPO Timeline (Tentative Timetable)
Tamilnad Mercantile Bank IPO opens on Sep 5, 2022, and closes on Sep 7, 2022. The Tamilnad Mercantile Bank IPO bid date is from Sep 5, 2022 10.00 A.M. to Sep 7, 2022 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
| Event | Date |
|---|---|
| Tamilnad Mercantile Bank IPO Opening Date | Sep 5, 2022 |
| Tamilnad Mercantile Bank IPO Closing Date | Sep 7, 2022 |
| Basis of Allotment | Sep 12, 2022 |
| Initiation of Refunds | Sep 13, 2022 |
| Credit of Shares to Demat | Sep 14, 2022 |
| Tamilnad Mercantile Bank IPO Listing Date | Sep 15, 2022 |
Tamilnad Mercantile Bank IPO Lot Size
The Tamilnad Mercantile Bank IPO lot size is 28 shares. A retail-individual investor can apply for up to 13 lots (364 shares or ₹191,100).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 28 | ₹14,700 |
| Retail (Max) | 13 | 364 | ₹191,100 |
| S-HNI (Min) | 14 | 392 | ₹205,800 |
| S-HNI (Max) | 68 | 1,904 | ₹999,600 |
| B-HNI (Min) | 69 | 1,932 | ₹1,014,300 |
Tamilnad Mercantile Bank IPO Review
On all counts, except the pending legal matter in regard to OFS, this issue is fairly priced and holds good future prospects. Though conservative, the steady growth track record and sound fundamentals of the bank augur well for considering the reasonably priced issue from a medium to long-term perspective. Read detail review…
Tamilnad Mercantile Bank IPO Prospectus
Company Contact Information
Tamilnad Mercantile Bank Limited
No. 57, Victoria Extension Road
Thoothukudi – 628 002,
Phone: +91 461 2325136
Email: secretarial@tmbank.in
Website: http://www.tmb.in/
Tamilnad Mercantile Bank IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: tmb.ipo@linkintime.co.in
Website: https://linkintime.co.in/