Tamilnad Mercantile Bank IPO: GMP, Issue Size, Issue price, IMP Dates

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Tamilnad Mercantile Bank IPO which was Incorporated in 1921 and is one of India’s oldest private sector banks is all set to make a debut on the stock market with an issue size of ₹807.84 Cr. TMB has a strong branch network of 509 branches and a total customer base of 5.08 million. TMB has a significant market presence in the state of Tamil Nadu with 369 branches and is also present in 15 other states and 4 union territories of India. 

Tamilnad Mercantile IPO-Overview   

Tamilnad Mercantile Bank Issue Date   10 – 12 October 2022   
Tamilnad Mercantile Bank IPO Opening Date   5th Sept 2022   
Tamilnad Mercantile Bank IPO Face Value   INR 10 per share   
Tamilnad Mercantile Bank IPO Price   INR 510 per share  
Tamilnad Mercantile Bank IPO Lot Size   28 Shares  
Issue Size   807.84 Cr 
Fresh Size   807.84 Cr 
Issue Type   Book built Issue IPO   
Listing At   BSE, NSE  
QIB Shares Offered   Not less than 75% of the Net Offer  
NII (HNI) Shares Offered   Not more than 15% of the Net Offer  
Retail Shares Offered   Not more than 10% of the Net Offer  
Company Promoters   TMB is a professionally managed bank and does not have an identifiable promoter.  

Tamilnad Mercantile Bank IPO Tentative Dates   

Tamilnad Mercantile Bank IPO opening date     5 September 2022   
Tamilnad Mercantile Bank IPO closing date     7 September 2022   
Basis of Allotment    12 September 2022  
Initiation of Refunds    13 September 2022  
Tamilnad Mercantile Bank IPO Listing Date    15 September 2022  

Tamilnad Mercantile Bank Industry Overview   

Traditionally, public banks have accounted for the major proportion of the banking credit outstanding. However, low profitability, weak capital position, low operational efficiency, and an increase in stressed loans in the past few years led to a slowdown in their loan growth. As a result, public banks gradually lost market share to private banks, which were relatively well-capitalized and had a higher degree of operational efficiency. Public banks which accounted for 71% share in credit outstanding in Fiscal 2015, account for only 59% share in Fiscal 2021.  While credit growth picked up significantly in Fiscal 2019 for public banks, private banks also witnessed minor improvement in growth.  

A partial economic slowdown resulted in lower credit growth in Fiscal 2020 for both public and private banks. In Fiscal 2021, public banks’ growth slowed to 3%, while private banks were able to grow 9% due to better capital buffers. Therefore, the latter was able to gain further market share. As merged banks focus on integration and banks placed under corrective action come out of the PCA framework, the credit growth of public banks is expected to lag that of private banks in the medium term. Public banks are expected to grow by 6-8% in Fiscal 2022, whereas private banks are expected to grow by 9-11%. 

Tamilnad Mercantile Bank Company Overview   

TMB was incorporated as ‘Nadar Bank Limited’ in 1921 and its name was changed to Tamilnad Mercantile Bank Limited in the year 1962. It received its license to carry on banking business from the Reserve Bank of India in 1962. As of March 31, 2021, the deposits and advances portfolio in the state of Tamil Nadu has contributed 76.33% to its total business. Tmb is focusing on diversifying its growth in other high-growth regions of India which will help increase its network and client base.  

TMB has also been consistently growing its customer base from approximately 4.42 million as of March 31, 2019, approximately 4.66 million as of March 31, 2020to approximately 4.91 million as of March 31, 2021, at the CAGR of 5.38% from Fiscal 2019 to 2021. Their focus on the quality of service and nurturing long-term relationships with their customers has enabled them to develop a well-recognized and trusted brand in south India, particularly in Tamil Nadu, India  

Tamilnad Mercantile Bank IPO-Objectives   

  1. To achieve a tier-I capital base to meet future capital requirements.  
  1. To meet future capital requirements.  
  1. To receive the benefits of listing the shares on the stock exchanges.  

Tamilnad Mercantile Bank Financial Statements   

Tamilnad Mercantile Bank IPO Strengths  

  • Tamilnad Mercantile Bank is a Long-term track record with almost 100 years of history.  
  • Strong presence in Tamil Nadu and consistent focus to expand presence in strategic regions.  
  • Diversified and loyal customer base i.e., retail, MSMEs, and agricultural.  
  • Consistently growing customer deposit base with a focus on low-cost retail CASA.  

Tamilnad Mercantile Bank IPO Weakness   

  • The firm is working in a highly competitive segment.  
  • Its major work is done in one single location which is its biggest pro and con as well.  

Company Contact Information 

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/ 

Tamilnad Mercantile Bank IPO Registrar 

Phone: +91-22-4918 6270 
Email: tmb.ipo@linkintime.co.in 
Website: https://linkintime.co.in/ 


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