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All that you should know about the Company before applying for the IPO.

September 02, 2022     

The public issue of equity shares of TAMILNAD MERCANTILE BANK LIMITED will open for subscription on September 05, 2022 and closes on September 07, 2022. It is expected to list on the stock exchanges on September 15, 2022. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

It is one of the oldest and leading old private sector banks in India with a history of almost 100 years. It offers a wide range of banking and financial services primarily to Micro, Small and Medium Enterprises (MSMEs), Agricultural and Retail customers. The bank was initially incorporated as Nadar Bank Limited in 1921 and its name was changed to Tamilnad Mercantile Bank Limited in the year 1962.

Banks advances (i.e. Loans) portfolio primarily consists of lending to (a) Retail customers; (b) Agricultural customers and (c) MSMEs.

  • MSMEs: It primarily offers various loan products to MSME customers operating in manufacturing, trading and services sector.
  • Agricultural customers: It primarily offers loan products to individual farmers, group of farmers and agricultural corporates.
  • Retail customers: It primarily offers home loans, personal loans, auto loans, educational loans as well as security backed loans of various types to retail customers.
  • Corporate customers: It offers various kinds of loans to corporates, in textiles and other industries, with its assortment of banking products and services including working capital, term financial, trade financial, structured finance services, foreign exchange business funding in domestic and foreign currencies.

As of 31-Mar-2022, the bank has 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centers. Banks overall customer base is approximately 5.08 million. It has a strong presence in the state of Tamil Nadu, with 369 branches and 949 ATMs and 255 Cash Recycler Machines. Other than Tamil Nadu, it has presence in 15 other states and 4 union territories of India including Maharashtra, Gujarat, Karnataka, and Andhra Pradesh, among others.

Who are the Promoters of the Company?

The bank is professionally managed and does not have an identifiable promoter

Positives about the Company

  • Strong legacy, loyal customer base and focus on improving servicing framework
  • Strong presence in Tamil Nadu with focus to increase presence in other strategic regions
  • Advances with focus on MSME, agricultural and retail segments
  • Consistently growing deposit base with focus on low-cost retail CASA
  • Professionally managed Bank with experienced senior management team and board of directors
  • Strong asset quality, underwriting practices and risk management policies and procedures
  • Consistent financial performance

Who are its key competitors?

  • City Union Bank Limited
  • CSB Bank Limited
  • DCB Bank Limited
  • Federal Bank Limited
  • Karur Vysya Bank Limited
  • Karnataka Bank Limited
  • RBL Bank Limited
  • South Indian Bank Limited

Why is the Company going public?

Given below are the objectives of the Company –

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • Augmenting its Tier – I capital base to meet its future capital requirements
  • To achieve the benefits of listing the equity shares on the stock exchanges

IPO Details

IPO Size ₹ 831.60 Crore *
Offer Mix 100% Fresh Issue
Price Band ₹ 500 - ₹ 525
Lot Size 28 Shares (& in multiples thereof)
Face Value ₹ 10
Application Amount Min. ₹ 14,700 (1 lot) | Max. ₹ 1,91,000 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar Link Intime India Private Limited
Cut-off time for UPI Mandate Confirmation 07-September-2022 (up to 05:00 PM)
* at upper price band

Category Wise Availability *

QIB ₹ 623.70 Crore
(75% of The Issue Size)
NIB ₹ 124.74 Crore
(15% of The Issue Size)
Retail ₹ 83.16 Crore
(10% of The Issue Size)
* at upper price band

Indicative Issue Timeline

Activity Date
IPO Opens September 05, 2022
IPO Closes September 07, 2022
Finalization of the basis of allotment September 12, 2022
Unblocking of funds / Initiation of refunds September 13, 2022
Credit of equity shares to Demat accounts September 14, 2022
Listing of equity shares September 15, 2022
Source: Company RHP  Alternate Text


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