Tamilnad Mercantile Bank IPO Details, Review, GMP, Subscription Status and Allotment

Tamilnad Mercantile Bank IPO Allotment Status

Tamilnad Mercantile Bank IPO Allotment Status (Allotment will be done on September 12, 2022)Click Here

Tamilnad Mercantile Bank IPO Allotment, Refund and Listing Date

Tamilnad Mercantile Bank IPO Opening DateSeptember 5, 2022
Tamilnad Mercantile Bank IPO Closing DateSeptember 7, 2022
Basis of AllotmentSeptember 12, 2022
Initiation of RefundsSeptember 13, 2022
Credit of Shares to DematSeptember 14, 2022
Tamilnad Mercantile Bank IPO Listing DateSeptember 15, 2022

Tamilnad Mercantile Bank IPO Details

Tamilnad Mercantile Bank IPO Price BandRs.500 to Rs.525 Per Equity Share
IPO Lot SizeMinimum 28 shares for 1 lot
Minimum AmountRs.14,700 for 1 lot
IPO SizeApprox. Rs.831.60 Crores
Listing AtBSE, NSE
Offer for Sale15,840,000 Equity Shares
Retail Quota:10%
QIB Quota:75%
NII Quota:15%
DRHP Draft Prospectus:Click Here
RHP Draft Prospectus:Click Here

Tamilnad Mercantile Bank IPO GMP (Grey Market Premium)

DateGMPKostakSubject to
5 SeptemberRs.35Rs.5,000

Tamilnad Mercantile Bank IPO Subscription Status Live

Investor CategorySubscription (times)
Qualified Institutions1.62
Non-Institutional Buyers2.94
Retail Investors3.10
Employees2.63
Others6.48
Total2.86

Tamilnad Mercantile Bank IPO Subscription Details (times)

DateQIBNIIRetailTotal
Day 1
Sep 5, 2022
0.730.581.530.83
Day 2
Sep 6, 2022
0.981.273.611.53
Day 3
Sep 7, 2022
1.622.946.482.86

Tamilnad Mercantile Bank Financial Report

Period EndedTotal AssetsTotal RevenueProfit After TaxNet WorthReserves and Surplus
31-Mar-2042758.83992.53464.893979.653837.14
31-Mar-2147527.174253.4654.044579.984437.47
31-Mar-2252858.494656.44901.95335.715193.2

Tamilnad Mercantile Bank IPO Valuation – FY2022

 Earning Per Share (EPS): Rs.57.67 per Equity Share
 Price/Earning P/E Ratio: N/A
 Return on Net Worth (RoNW): 15.40%
 Net Asset Value (NAV):Rs.374.41 per Equity Share

Tamilnad Mercantile Bank IPO Review

What our Expert say about Tamilnad Mercantile Bank IPO ReviewSubscribe

Objects of the Issue

  • To augment tier-I capital base to meet future capital requirements.
  • Meet offer issue expenses.
  • To receive the benefits of listing the shares on the stock exchanges.

Tamilnad Mercantile Bank IPO Registrar

Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: tmb.ipo@linkintime.co.in
Website: https://linkintime.co.in/

Peer Group

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

Company Promoters

  • TMB is a professionally managed bank and does not have an identifiable promoters.

Company Address

Tamilnad Mercantile Bank Limited
No. 57, Victoria Extension Road
Thoothukudi – 628 002,
Phone: +91 461 2325136
Email: secretarial@tmbank.in
Website: http://www.tmb.in/

About Tamilnad Mercantile Bank

The Rs 831.60 crore Initial Public Offering (IPO) of Tamilnad Mercantile Bank TMB is all set to go live in the primary market on Monday, September 5. Tamilnad Mercantile Bank Limited (TMB) is a bank with its headquarters in Thoothukudi, Tamil Nadu, India. It is among the first banks in banking sector to offer online deposits through the TMB E-Connect facility. The deposits portfolio includes fixed deposits, rolling deposits, savings and current banking accounts, among others.

Enter the Customer ID [7-digit number in numbers] and the registered mobile number on TMB. If you are unsure about your Customer ID, please look up the Customer ID on the bank passbook or on the A/C bill or ask at the branch. You may also want to print out your confirmation page and use the transaction reference number for any further correspondence.

Banks and financial institutions use these to identify themselves worldwide. According to DRHP, a half-dozen foreign institutional investors collectively hold 23.2% of banks. The banks minority shareholders are seeking to keep it from going public. The shareholders cited concerns about rescission of offer to sell (OFS) and decision making by the Securities and Exchange Board of Indias (Sebis) process in sanctioning the public offer. 

The Tamilnad Mercantile Banks 3-day Initial Public Offering (IPO) opens to the public on Monday, September 5, 2022, and ends on Wednesday, September 7. The private sector lender, which is headquartered in Tuticorin, has fixed the price band of Rs500-525 per share for its rs832-crore initial share offering. 

As per market observers, shares in Tamilnad Mercantile Bank are available today in the gray market at a gain-making premium (GMP) of Rs31. The shares of the company are scheduled to list on stock exchanges BSE and NSE on Thursday, 15 September 2022. Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are lead managers in the lead management of the book, while Link Intime India Private Ltd is the registered agent of the IPO.

The IPO of Tamilnad Mercantile Bank will be a fresh issue of 1.58 crore shares of stock, with the bank proposing to use the proceeds to boost its capital base, which would touch 25% as against its current 22% after issue, as well as to address its future capital requirements. Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks with a history of 101 years, having been established in 1921 as Nadar Bank.

The Bank offers a broad range of services, mostly for micro, small, medium enterprises, agriculture, and retail customers. The bank operates 509 branches, 369 in its native state Tamil Nadu, which generates more than 70% of the business, while the remaining branches are spread over 15 states and four union territories.

“TMB could be a good investment destination, given its better growth prospects, with a healthier asset quality, a sound risk management framework, equipped basic retail banking infrastructure, and sizeable markets for expansion. However, the ongoing litigation could affect TMB should a judgment against the bank come.

At an upper price band of Rs525/-, shares are priced 1.35 times the FY22 book value (based on fully diluted post-issuance shares).

We would suggest you to buy into this issue for a longer time,” said an Investmentz.com IPO note. 

The bank posted net profit of Rs8,212 crore for fiscal 2022 from revenue of Rs4,656.4 crore, as against Rs603 crore in FY21 and Rs4,253 crore, respectively.

The IPO of Tamilnad Mercantile Bank opened for the public on September 5, 2022, and closed on September 7, 2022. 

The issue comprises of a fresh issue of up to 158,27,495 shares of stock and a sell-off of up to 12,505 shares of stock. The OFS consisted of up to 5000 shares of each being sold by D. Prem Palanivel and Priya Rajan, Prabhakar Mahadeo Bobde is selling 1000 shares, up to 505 shares being sold by Narsimhan Krishnamurthy, and 500 shares each being sold by M. Malliga Rani and Subramanian Venkiteshwaran Iyer. 

The price band is fixed at Rs. The shares are scheduled to be issued on September 12, with a listed date of September 15. The book-running lead managers of this issue are Axis Capital, Motilal Oswal Investment Advisors, SBI Capital Markets. 

With a distinguished history over 100 years, the Mercantile Bank of Tamilnad is one of the oldest private sector banks in the country. Tamilnad Mercantile Bank was incorporated as Nadar Bank Ltd in 1921, later changing its name to Tamilnad Mercantile Bank in 1962.

They are headquartered in Tamilnadu and are well-presented across the state, with 396 branches and 941 ATMs across the state. They have more than 509 branches, of which 106 branches are in rural areas, 247 are in semi-urban areas, 80 are in urban areas, and 76 are in metro areas. As on June 30, 2021, Banks total customer base stands at about 4.93 million, out of which 69.96% comprises customers that have been associated with the Bank for more than five years. 

Apart from Tamil Nadu, the bank is present in 15 other states and four Union Territories. They are present in Maharashtra, Gujarat, Karnataka, and Andhra Pradesh states, with presence of 90 branches, and as on June 30, 2021, they had 123 ATMs and 15 CPMs. 

The banks largest branch is located in Mumbai, contributing Rs16,683.90 million or 2.30 percent of its total assets as of March 31, 2021. One of their oldest branches is at Sivakasi, Tamil Nadu, that was started in 1942, contributing Rs 12,806.30 million or 1.77% to our total business as of March 31, 2021. 

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