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Tamilnad Mercantile Bank to open IPO on Sept 5 at fixed price band

by Rishika Choudhury

Date & Time: Aug 31, 2022 8:00 PM

Read Time: 2 minute

The initial public offering (IPO) of private lender TamilNad Mercantile Bank (TMB) is scheduled to take place on Monday 5th September at Dalal Street.

The company sells shares in the range of Rs 500-525 per share. The proposed primary offering is open for subscription until Wednesday, September 7th.

The IPO is purely a new issue of up to 1,58,40,000 shares, each with a par value of Rs 10 and a total value of Rs 831.6 million. TMB is a professionally operated bank with no identifiable promoter.

It is one of the oldest privately owned financial institutions in the country, providing a range of banking and financial services primarily to micro, small and medium enterprises, agricultural and retail customers.
Investors can bid a minimum of 28 shares and any multiples thereafter. The Anchor Book opens on his Friday, September 2nd.

The Thoothukudi (formerly Tuticorin)-based private lender plans to use the net proceeds from the offering to grow its Tier I capital base, meet its capital needs and leverage the benefits of its listing.

Lender has customer base of 50.8 lakh

The lender has a customer base of 50.8 lakh, of which 41.8 lakh or about 85 per cent, comes from Tamil Nadu itself. However, it has a presence in Gujarat, Maharashtra, Karnataka, Andhra Pradesh and Delhi.

As of March 31, 2022, the lender had 509 branches, of which 106 were in rural areas, 247 in semi-urban areas, 80 in urban areas and 76 in metropolitan areas.

For the year ended on March 31, 2022, the company had reported total revenue of Rs 4,656.44 crore with a net profit of Rs 821.9 crore. In the previous fiscal, it had clocked a revenue of Rs 4,253.4 with a net profit of Rs 603.33 crore.

For FY 2021-22, its gross NPA stood at 1.69 per cent, down from 3.44 per cent the previous year. TMB`s net NPA also fell to 0.95 per cent from 1.98 per cent during the same period under review.

Up to 75 per cent of the total offer is reserved for qualified institutional buyers, and 15 per cent for non-institutional investors. The remaining 10 per cent stake is allocated to retail investors.

Axis Capital, SBI Capital Markets and Motilal Oswal Investment Advisors are the lead bookers of this offering and Link in Time India is the registrar of the offering.

Also Read: IPOs can’t be seen as a "surrogate" for financing: said Narayana Murthy, a software icon

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