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Tuticorin-based Tamilnad Mercantile Bank is an old private sector bank in India, with a history of almost 100 years. The bank plans to raise Rs 831.60 crore funds through initial public offering (IPO). The price band for the IPO has been fixed at Rs 500-525 per equity share. The subscription for the IPO opens on September 5 and closes on September 7, 2022.
The IPO comprises of fresh issue of 1.58 crore shares aggregating to Rs 831.60 crore. The face value is Rs 10 apiece.
Company Summary
Tamilnad Mercantile Bank is one of the 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, agricultural and retail customers.
As of March 31, 2022, the bank has 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. The bank has a very strong presence in Tamil Nadu with 369 branches, 949 automated teller machines (ATM) and 255 cash recycler machines.
Apart from Tamil Nadu, the bank is present in 15 other states and 4 union territories of India. The bank has sizable presence in Maharashtra, Gujarat, Karnataka, and Andhra Pradesh with 90 branches, 125 ATMs and 18 Cash Recycling Machines.
The bank has been consistently growing its customer base and it has grown from 46.6 lakh in FY2020 to 50.8 lakh in FY22. Moreover, the bank’s overall customer base was approximately 50.8 million, out of which 79.78% of customers have been associated with the bank for over five years.
Company Strengths
- Strong and loyal customer base and focus on improving servicing framework.
- Wide presence in Tamil Nadu with focus to expand presence in other strategic regions.
- Advances portfolio consisting of a wide basket of retail finance and small ticket loan products with a focus on MSME, agricultural and retail segments.
- Consistent growth in deposits with a focus on increasing low-cost CASA deposits.
- Experienced senior management team and board of directors.
- Strong asset quality, underwriting practices and risk management policies and procedures.
- Consistent financial performance track record.
Company Financials
| Period Ended | FY20 | FY21 | FY22 |
| Total Assets | 42,758.80 | 47,527.17 | 52,858.49 |
| Total Reserves and Surplus | 3,837.14 | 4,437.47 | 5,193.20 |
| Net Worth | 3,979.65 | 4,579.98 | 5,335.71 |
| Deposits | 36,825.03 | 40,970.42 | 44,933.11 |
| Net Advances | 27,715.76 | 31,069.60 | 33,491.54 |
| Total Income | 3,992.53 | 4,253.40 | 4,656.44 |
| Net Profit for the year | 407.69 | 603.33 | 821.91 |
* All numbers are in Rs crore
Purpose of the IPO
- Tamilnad Mercantile Bank (TMB) plans to utilise the net proceeds from the IPO towards increasing its Tier–I capital base to meet its future capital requirements.
- Additionally, TMB expects to receive the benefits of listing its equity shares on the stock exchanges.
Company Promoters
Tamilnad Mercantile Bank is a professionally managed bank and does not have an identifiable promoter or promoter group in terms of SEBI ICDR Regulations and the Companies Act, 2013.
IPO Details
IPO Start Date | Sep 5, 2022 |
IPO End Date | Sep 7, 2022 |
Face Value | Rs 10 per share |
IPO Price Band | Rs 500 to Rs 525 per share |
IPO Lot Size | 28 Shares |
Issue Size | 15,840,000 shares of Rs 10 (aggregating up to Rs 831.60 crore) |
Fresh Issue | 15,840,000 shares of Rs 10 |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Minimum | 1 | 28 | Rs 14,700 |
Maximum | 13 | 364 | Rs 191,100 |