Tamilnad Mercantile Bank IPO: The initial public offering (IPO) of private lender Tamilnad Mercantile Bank (TMB) is set to hit Dalal Street on Monday, September 5. The issue of one of the oldest lenders of the country will close its public offer on September 7. Tuticorin-based Tamilnad Mercantile Bank is one of the oldest private sector banks in the country, with a history of almost 100 years. It offers a wide range of banking and financial services primarily to Micro, Small and Medium Enterprises (MSME), agricultural and retail customers.
The IPO is entirely a fresh issue of up to 1,58,40,000 equity shares with a face value of Rs 10 each, aggregating to Rs 831.6 crore. TMB is a professionally managed bank and does not have any identifiable promoters.
Tamilnad Mercantile Bank IPO: Price Band & Lot Size
The company will sell its shares in the range of Rs 500-525 apiece. Investors can make a bid for a minimum of 28 equity shares and in multiples thereafter. The anchor book will open on Friday, September 2.
Shares will be allotted to dematerialised accounts of successful investors on September 14 and the stock will make its market debut on September 15.
The Thoothukudi (formerly Tuticorin)-based private lender plans to utilise the proceeds towards augmenting its tier–I capital base to meet its capital requirements.
Tamilnad Mercantile Bank IPO: Financials
As of March 31, 2022, the lender is required to maintain a minimum CRAR of 11.5 percent. Its tier I capital adequacy ratio was at 20.46 percent and Tier-I capital is Rs 5231.77 crore.
For FY22, the bank’s gross non-performing assets were at 1.69 percent, against 3.44 percent in the previous year. Net NPAs were at 0.95 percent versus 1.98 percent in the year before.
Its CASA ratio, the ratio of deposits in current account and savings account to the total deposits of the bank, improved to 30.5 percent in FY22 from 28.52 percent in the previous ratio.
Total deposits rose to Rs 44,933.12 crore from Rs 40,970.42 crore, while advances were at Rs 33,491.54 crore, up from Rs 31,069.60 crore in the previous year.
Net profit for the year rose 36 percent to Rs 821.91 crore from Rs 603.33 crore a year ago. Net interest income increased 18 percent to Rs 1815.23 crore.
As of March 31, 2022, the lender had 509 branches, 106 of which were in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres.
Axis Capital, SBI Capital Markets and Motilal Oswal Investment Advisors are the book-running lead managers for the offer, whereas Link Intime India is the registrar to the issue.
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