tamilnad mercantile bank ipo: Tamilnad Mercantile Bank IPO: 15 things you must know before subscribing – Blue Barrows

The Rs 831.6 crore initial public offering (IPO) of Tamilnad Mercantile Bank (TMB) is all set to hit the primary markets on Monday, September 5. Here are key things you should know about the issue.

  1. When will Tamilnad Mercantile Bank’s IPO open for subscription?
    Tamilnad Mercantile Bank’s IPO will open for subscription on Monday, September 5.
  2. When will the IPO of Tamilnad Mercantile Bank close for subscription?
    The IPO of Tamilnad Mercantile Bank will close for subscription on Wednesday, September 7.
  3. What is the price band for Tamilnad Mercantile Bank’s IPO?
    The price band for Tamilnad Mercantile Bank’s IPO has been fixed at Rs 500-525 per share.
  4. What is the issue size of Tamilnad Mercantile Bank’s IPO?
    The IPO is entirely an fresh issue of up to 1,58,40,000 equity shares with a face value of Rs 10 each. At the upper range of the price band, the company will raise Rs 831.60 crore via initial stake sale.
  5. What Tamilnad Mercantile Bank will do with the net proceeds from the issue?
    The Thoothukudi (formerly Tuticorin)-based private lender plans to utilise the net proceeds from the issue towards augmenting its tier–I capital base to meet its capital requirements and get the benefits of listing on the stock exchanges.
  6. What is the lot size for Tamilnad Mercantile Bank’s IPO?
    Investors can subscribe to the Tamilnad Mercantile Bank’s IPO by betting for a lot of 28 shares or in multiples thereof. At the upper range of price band, one lot of the IPO is worth Rs 14,700. A retail bidder can bid for 13 lots at maximum.
  7. How was Tamilnad Mercantile Bank’s performance last year?
    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.
  8. What does Tamilnad Mercantile Bank do?
    Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks in India. It offers an array of banking and financial services to retail customers, micro, small, and medium enterprises (MSMEs).About a century old TMB has a strong portfolio of advances and deposits from a diversified customer base including retail customers, agricultural customers, and MSMEs.
  9. How big is Tamilnad Mercantile Bank’s network?
    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.The lender had 509 branches, with 106 located in rural areas, 247 in semi-urban locations, 80 in urban and 76 in metropolitan centres as of March 31, 2022.
  10. What are the key financials of the Tamilnad Mercantile Bank?
    For FY22, the bank’s gross non-performing assets were at 1.69 per cent, against 3.44 per cent in the previous year. Net NPAs were down at 0.95 per cent versus 1.98 per cent 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 per cent in FY22 from 28.52 per cent 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.
  11. What is the quota reserved for retail investors in Tamilnad Mercantile Bank’s IPO?
    The quota for retail investors Tamilnad Mercantile Bank’s IPO is fixed at 10 per cent of the net offer. QIB quota is fixed at 75 per cent while for NII the quota is reserved at 15 per cent.
  12. When will the basis of allotment be finalised for Tamilnad Mercantile Bank’s IPO?
    The finalisation of the basis of allotment is likely by September 12 and the initialisation of refunds is likely by September 13. Meanwhile, credit of shares in the demat account is likely by September 14.
  13. When will Tamilnad Mercantile Bank list on exchanges?
    Tamilnad Mercantile Bank is expected to make its market debut on September 15 (Thursday).
  14. Where could we check Tamilnad Mercantile Bank’s IPO allotment status?
    Those who would bid for the issue can check the subscription status on the online portal of Link Intime India India, the registrar to the IPO.
  15. Who are the leading book managers to the issue?
    Axis Capital, Capital Markets and Investment Advisors are the book running lead managers to the issue.