NEWS

Tamilnad Mercantile Bank Limited IPO : Key Highlights and IPO Details

TMB or Tamilnad Mercantile bank is one of the oldest banks in India. It has a variety of financial products to offer to various types of customer base like retail. Micro, small, MSME etc. The total number of branches as of today are 509 and its customer base is close to 5.10 million customers. The bank has its major branches located in the state of Tamil Nadu with 369 branches there.

IPO DETAILS

Tamilnad Mercantile Bank Limited IPO is set to launch on 5th Sept, 2022. The subscription timeline extends till 7th Sept, 2022. The size for the IPO is 831.60 Crore Rs.. Shares issued through fresh issues are worth Rs. 831.60 Crore Rs. No shares are issued through Offer For Sale mode. The lot size is 28 shares and the price range is 500 Rs. – 525 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	5th Sept, 2022
CLOSING DATE FOR IPO	7th Sept, 2022
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	500 Rs. – 525 Rs.
LOT SIZE	28 shares
MINIMUM ORDER QUANTITY	28 shares
ISSUE SIZE	831.60 Crore Rs.
OFFER FOR SALE	No shares
FRESH ISSUE	831.60 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	15th Sept, 2022

IMPORTANT DATES

IPO OPENING DATE	5th Sept, 2022
CLOSING DATE FOR IPO	7th Sept, 2022
IPO ALLOTMENT DATE	12th Sept, 2022
REFUNDS	13th Sept, 2022
DEMAT A/C CREDITED ON	14th Sept, 2022
IPO LISTING DATE	15th Sept, 2022

Tamilnad Mercantile Bank Limited IPO begins for subscription from 5th Sept, 2022. The IPO subscription would continue till 7th Sept, 2022. The allotment status for the shareholders who applied would come on 12th Sept, 2022. The refunds for the ones who did not get allotment would be initiated on 13th Sept, 2022. The DEMAT accounts of shareholders would be credited on 14th Sept 2022. The listing of the company would be accompanied on 15th Sept, 2022.

Lead Managers

The lead managers are :

Motilal Oswal Investment Advisors Private Limited
Axis Capital Limited
SBI Capital Markets Limited

The minimum lot size for the company is decided at 28 shares. This holding accounts to 14700 Rs.. The maximum lot size is decided at 364 shares. This amounts to 191100 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	28 shares	14700 Rs.
Maximum	364 shares	191100 Rs.

OBJECTIVES FOR THE IPO

For General corporate purposes.
To meet the future capital requirements.
For receiving the listing benefits.

COMPANY FINANCIALS

Particularly (in Million Rs.)	2021-22	2020-21	2019-20
ASSETS	52859	47528	42758
Revenue	4657	4254	3994
PAT	902	655	465

The asset base of the TMB has been rapidly expanding with more than 5000 Million Rs of assets added every year. The bank has been constituent in its growth prospective. The reason behind the same is its focus on low cost retail CASA.

The revenue of the bank has been growing for years. The past track record from 2020 till date show that the net increase in revenue is more than 650 Million Rs. On the other hand the profits of the banks have been heavily increasing. The profits after tax for 2022 is recorded at 900 Million Rs. The same was recorded at 465 Million Rs two years back. This means an increase of almost 2 times in the profits. The bank is successfully increasing the profit rate. This has been evident by the slow increase in revenue but heavy increase in profits every year.

PROS

The bank has a history of working for more than 10 years.
Its major work is done in one single location which is its biggest pro and con as well.
Great financial track record as seen in the above table.