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Tamilnad Mercantile Bank (TMB) IPO

Tamilnad mercantile IPO comprises fresh issue of 1,58,27,495 shares and an offer for Sale of up to 12,505 Equity Shares by the selling shareholders. Tamilnad Mercantile Bank is one of the oldest private banks. It has a deep presence in urban and rural geographies of Tamil Nadu. Tamilnad Mercantile Bank also reported deposits of ₹ 409.70 billion and advances of ₹ 310.70 billion as of March 2021. Click here to Apply for Tamilnad Mercentile Bank IPO

Opening Date:

Sep 5, 2022

Issue Size:

₹ 831.60 Cr

Closing Date:

Sep 7, 2022

Face Value:

₹10

per equity share

Price Band:

₹500 to ₹525

per share

Market Lot:

28 Shares

Opening Date:

Sep 5, 2022

Issue Size:

₹ 831.60 Cr

Closing Date:

Sep 7, 2022

Face Value:

₹ 10

per equity shares

Price Band:

₹500 to ₹525

per share

Market Lot:

28 Shares

Listing at NSE, BSE

Tamilnad Mercantile IPO Important Dates:

IPO Open Date Sep 5, 2022
IPO Close Date Sep 7, 2022
Allotment Date Sep 12, 2022
Initiation of Refunds Sep 13, 2022
Credit of shares to Demat Account Sep 14, 2022
Ipo Listing Date Sep 15, 2022
UPI Mandate Expiry Date To be announced

View all upcoming IPOs

Tamilnad Mercantile Bank IPO - Day 1 Live Updates

At 05:00:00 PM.

- This IPO has been subscribed 2.86x by 05:00 PM. on Day 3.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 1.62x

- (NII) Non-institutional buyers: 2.94x

- (RII) Retail Individual buyers: 6.48x

- Employees: [.]

At 03:00:00 PM.

- This IPO has been subscribed 2.52x by 03:00 PM. on Day 3.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 1.47x

- (NII) Non-institutional buyers: 2.62x

- (RII) Retail Individual buyers: 5.44x

- Employees: [.]

At 01:00:00 PM.

- This IPO has been subscribed 1.95x by 01:00 PM. on Day 3.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 1.09x

- (NII) Non-institutional buyers: 1.79x

- (RII) Retail Individual buyers: 4.77x

- Employees: [.]

At 11:08:00 AM.

- This IPO has been subscribed 1.77x by 11:08 AM. on Day 3.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.98x

- (NII) Non-institutional buyers: 1.60x

- (RII) Retail Individual buyers: 4.40x

- Employees: [.]

At 05:00:00 PM.

- This IPO has been subscribed 1.53x by 05:00 PM. on Day 2.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.98x

- (NII) Non-institutional buyers: 1.27x

- (RII) Retail Individual buyers: 3.61x

- Employees: [.]

At 03:00:00 PM.

- This IPO has been subscribed 1.22x by 03:00 PM. on Day 2.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.73x

- (NII) Non-institutional buyers: 1.05x

- (RII) Retail Individual buyers: 2.94x

- Employees: [.]

At 12:58:00 PM.

- This IPO has been subscribed 1.09x by 12:58 PM. on Day 2.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.73x

- (NII) Non-institutional buyers: 0.86x

- (RII) Retail Individual buyers: 2.51x

- Employees: [.]

At 10:29:00 AM.

- This IPO has been subscribed 0.99x by 10:29 AM. on Day 2.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.73x

- (NII) Non-institutional buyers: 0.82x

- (RII) Retail Individual buyers: 2.04x

- Employees: [.]

At 05:00:00 PM.

- This IPO has been subscribed 0.83x by 05:00 PM. on Day 1.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.73x

- (NII) Non-institutional buyers: 0.58x

- (RII) Retail Individual buyers: 1.53x

- Employees: [.]

At 03:25:00 PM.

- This IPO has been subscribed 0.61x by 03:25 PM. on Day 1.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.73x

- (NII) Non-institutional buyers: 0.12x

- (RII) Retail Individual buyers: 1.02x

- Employees: [.]

At 12:29:00 PM.

- This IPO has been subscribed 0.27x by 12:29 PM. on Day 1.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.30x

- (NII) Non-institutional buyers: 0.03x

- (RII) Retail Individual buyers: 0.55x

- Employees: [.]

At 10:29:00 AM.

- This IPO has been subscribed 0.03x by 10:29 AM. on Day 1.

- It is a public issue of 8,712,000 equity shares.

 Status of Subscription

- (QIB) Qualified institutional buyers: 0.00x

- (NII) Non-institutional buyers: 0.01x

- (RII) Retail Individual buyers: 0.16x

- Employees: [.]

About Tamilnad Mercantile Bank

It was established as ‘Nadar Bank Limited’ in 1921 and the name was changed to ‘Tamilnad Mercantile Bank Limited’ in 1962. This bank is headquartered at Thoothukudi, Tamil Nadu and has built a strong presence with 369 branches and 941 automated teller machines (“ATMs”) and 238 cash recycler machines (“CRMs”) as of June 30, 2021.

The bank has built a wide portfolio of advances and deposits across customer segments. Advances portfolio primarily consists of lending to Retail customers,agricultural customers and MSMEs. The deposits portfolio contains term deposits, recurring deposits,savings bank and current bank accounts amongst others.

Tamilnad Mercantile Bank IPO Objectives:

Here is why Tamilnad mercantile bank IPO is happening:

  • Utilize funds for meeting bank’s future capital requirements

  • Also derive benefits of being a publicly listed company .

Why should you invest in the Tamilnad Mercantile Bank IPO?

Below are your top 2 reasons:

  • Reliable risk management process and strong underwriting processes
  • Strong legacy of 100 years and a customer base of 4.91 million growing with a CAGR of 5% in last 3 years

Financial Highlights:

Particulars

FY21

FY20

FY19

Revenue (Cr)

3,635.79

3,992.52

4253.4

Profit (Cr)

294.61

464.89

654.04

EPS (INR)

18.14

28.61

28.61

How to apply for Tamilnad Mercantile Bank IPO?

There are two ways by which investors can choose to start trading. One is through UPI, and the other is with the help of a Demat account. The processes are discussed below:

UPI

  • Link your bank account to a UPI ID.
  • Register your UPI id with your Demat account.
  • Subscribe for Tamilnad Mercantile Bank IPO and approve the payment on your UPI ID.

Demat Account

Tamilnad Mercantile Bank Noteworthy Highlights

  1. The digital and branch transactions increased by a CAGR of 47% in last 3 years

  2. The treasury portfolio increased at CAGR of 13.27% from ₹ 91,924.51 million as of March 31, 2019 to ₹ 117,948.80 million as of March 31, 2022

Tamilnad Mercantile Bank IPO SWOT Analysis

Strengths

  • The bank reported second highest Net Profit for the Fiscal 2021 at 6.03 billion lagging only behind Federal Bank.
  • Net non performing assets has been lower than its peersNet non performing assets has been lower than its peers.
  • Tamilnad mercantile bank also had second highest provision coverage ratio among its peersTamilnad mercantile bank also had second highest provision coverage ratio among its peers.
  • Current accounts savings accounts (CASA) has grown by a CAGR of 16% in last 3 years.

Weaknesses

  • Around 37% of paid up equity share capital is subjected to outstanding legal proceedings.
  • The bank cannot open new branches unless it is listed and also require to obtain prior permission from the RBI.
  • It is dependent on Retail, MSME and Agricultural customers and any adverse developments in these segments could adversely growth strategies.
  • The bank’s lion share of revenue is from tamil nadu, any political / economic instability in the state can disrupt the business.

Opportunities

  • Banking sector in india is under penetrated which provides immense opportunities for banks and financial institutes to grow.
  • The RBI along with the Center and the state governments is taking measures to improve demand for housing loans.

Threats

  • If India’s debt rating by an international rating agency is downgraded could have a negative impact on performance of Tamilnad mercantile bank.
  • Another Pandemic like COVID can adversely impact the banks cash flows and growth.
  • Increase in inflation might reduced the revenue for the Tamilnad mercantile bank​.
  • Any slowdown or perceived slowdown in the Indian economy, could adversely affect banking business.
  • Banking has been a fundamentally high competition business, the penetration of competitors in Tamilnad mercantile banks locations can reduce the market share and eventually revenue.

Competitive Analysis/ Market Peers

Below is a quick snapshot of how Tamilnad Mercantiles peer banks have been performing

Peer

Revenue( In Mn)

P/E

Tamilnad Mercantile bank

42,534

NA

City Union Bank Limited

48,394

18.26

CSB Bank Limited

22,731

23.49

DCB bank ltd

39,167

8.00

Federal Bank Limited

1,62,719

9.61

Karur Vysya Bank Limited

65,270

8.97

Karnataka Bank Limited

77,274

3.36

RBL Bank Limited

1,06,098

16.64

South Indian Bank Limited

84,909

27.71

Frequently Asked Question

What is Tamilnad Mercantile Bank IPO?

Tamilnad Mercantile Bank IPO comprises 1,58,27,495 fresh equities and an offer for sale of 12,505 shares.

When will Tamilnad Mercantile Bank IPO allotment be available?

Tamilnad Mercantile Bank IPO allotment date is Sep 12, 2022.

What will be Tamilnad Mercantile Bank IPO lot size?

The lot size of Tamilnad Mercantile Bank IPO is 28 shares.

When will Tamilnad Mercantile Bank IPO open for subscription?

Tamilnad Mercantile Bank IPO will be open for subscription on Sep 5, 2022.

What is the minimum lot size that retail investors can subscribe to?

Retail investors can apply for a minimum of one lot.

When is the Tamilnad Mercantile Bank IPO listing date?

Tamilnad Mercantile Bank's listing date isn't announced.

Which exchanges will Tamilnad Mercantile Bank list on?

Tamilnad Mercantile Bank shares will list on BSE and NSE exchanges.

How will I receive shares?

You will receive the shares in your Demat account.

Is it necessary to approve a UPI mandate request immediately?

If you don't approve the UPI mandate, your application will automatically get rejected. Don't worry! You usually have T+1 days to accept the payment mandate.

Is it possible for NRIs to use Angel One App to apply for Tamilnad Mercantile Bank IPO?

NRIs can use their Angel One account to apply for Tamilnad Mercantile Bank if their bank supports for NRE/NRO account.

Who is the owner of Tamilnad Mercantile Bank?

K. V. Rama Moorthy is the MD and CEO of Tamilnad Mercantile Bank.

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