Tamilnad Mercantile Bank IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Nov 17, 2022The bank company, present in Indian history for 100 years now, is set to launch the Fresh Issue IPO in the market on September 5.
Tamilnad Mercantile Bank IPO is purely a Fresh Issue of Equity Shares for up to 15,840,000 Equity Shares. The entity filed the Draft papers for the IPO in September 2021 and, earlier in 2022, received the SEBI nod.
Let’s review this company’s growth and other essential aspects before hopping into the IPO subscription race. With the help of Tamilnad Mercantile Bank IPO Review, you will get answers to all your questions.
| Face Value | Rs 10 |
| Price Band | Rs.500 to Rs.525 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 28 Shares |
| Listing Date | Sep 15, 2022 |
| Offer for Sale | – |
| Fresh Issue | Rs.831.60 Crore |
| IPO Size | Rs.831.60 Crore |
| Tick Size | 1 |
Tamilnad Mercantile Bank IPO Overview
Tamilnad Mercantile Bank IPO is entirely a Fresh Issue of Equity Shares. The company’s promoters or other investors will not be offloading any of their shares in the upcoming IPO. The company is raising money by offering 15,840,000 Equity Shares to the public.
As per the DRHP, Tamilnad Mercantile Bank will utilize the funds from the IPO to augment its tier-I capital base to meet future capital requirements and attain the benefits of listing its shares on the stock exchanges..
Tamilnad Mercantile Bank IPO Important Dates
| Events | Date |
| IPO Opening Date | Sep 5, 2022 |
| IPO Closing Date | Sep 7, 2022 |
| Basis of Allotment Finalization | Sep 12, 2022 |
| Refunds Initiation | Sep 13, 2022 |
| Credit of Shares to Demat Account | Sep 14, 2022 |
| Share Listing Date | Sep 15, 2022 |
Tamilnad Mercantile Bank IPO Dates have been determined, and we are here to provide you with all the information in that regard. The company is set to open the IPO on September 5th. The subscription period will be three days, which means the subscription will conclude on September 7th.
Further, the listing date for the shares is set on September 15th, and prior to that, on the 14th of September, the shares will be credited in the Demat Accounts of the shareholders.
Tamilnad Mercantile IPO Price, Size, Share Offerings
| Face Value | Rs.10 |
| Price Band | Rs.500 to Rs.525 |
| Offer for Sale | – |
| Fresh Issue | Rs.831.60 Crore |
| IPO Size | Rs.831.60 Crore |
Tamilnad Mercantile Bank IPO Size comprises 15,840,000 equity shares having a face value of Rs. 10 each. Tamilnad Mercantile Bank IPO Price Band is set between Rs. 500 – Rs. 525 per share.
The minimum lot size for this IPO is 28 shares. The final share price of the shares will be determined after the IPO subscription.
You can bid on this professionally managed banking company through online mode by the ASBA process.
Tamilnad Mercantile Bank IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 15 Sep 2022 | Rs. 15 | – | – |
| 14 Sep 2022 | Rs. 15 | – | – |
| 13 Sep 2022 | Rs. 15 | – | – |
| 12 Sep 2022 | Rs. 15 | – | – |
| 09 Sep 2022 | Rs. 5 | – | – |
| 08 Sep 2022 | Rs. 5 | – | – |
| 07 Sep 2022 | Rs. 15 | Rs. 500 | Rs. 2500 |
| 06 Sep 2022 | Rs. 15 | Rs. 500 | Rs. 2500 |
| 05 Sep 2022 | Rs. 35 | Rs. 500 | Rs. 2500 |
| 02 Sep 2022 | Rs. 35 | Rs. 500 | Rs. 5000 |
The opening of the Tamilnad Mercantile Bank IPO is just around the corner, so we can expect a positive surge in its trading in the Grey Market before the IPO is open. Various traders are keen on investing in this strong banking company which has spread its wings in over 15 states and has established over 500 branches.
You can check and observe the Tamilnad Mercantile Bank IPO GMP from the table given above. Here, the information from everyday trading is given.
Tamilnad Mercantile IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 5th Sept | 0.73x | 0.58x | 1.53x | 0.83x |
| 2nd Day – 6th Sept | 0.98x | 1.27x | 3.61x | 1.53x |
| 3rd Day – 7th Sept | 0.98x | 1.62x | 4.44x | 1.78x |
| Shares Offered or Net Issue | 4,752,000 | 2,376,000 | 1,584,000 | 8,712,000 |
The wait is over for the investors looking to invest in this 100-year-old banking company. Tamilnad Mercantile Bank is opening its IPO on 5th September. The IPO will remain open for three days between 5th – 7th September, during which the bidders can bid on the IPO.
Tamilnad Mercantile Bank IPO Subscription closing date will be 7th September. And once the IPO is completed, the company shares will be listed on NSE and BSE.
Tamilnad Mercantile Bank IPO Allotment Status
The basis of Tamilnad Mercantile Bank IPO Allotment will take place on 12th September. The company is opening the IPO soon to welcome the bids from the public and list its shares on the mainboard stock exchanges.
Once the basis of allotment is finalized, the company will credit the shares in the Demat accounts of the successful bidders on the 14th of September.
Tamilnad Mercantile Bank IPO Live Performance
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Tamilnad Mercantile Bank – Company Review
Tamilnad Mercantile Bank was incorporated in 1921 and has recently marked the 100 years milestone. It is one of the oldest private sector banks in India and offers a variety of products and facilities to its customers under one roof. The company has evolved with the passage of time and technology and incorporated technological features like Digi Lobby and more.
You can download the bank’s mobile application to avail banking facilities, use net banking, or even through WhatsApp. Tamilnad Mercantile Bank has made it convenient in every possible manner for the customers so that they can easily reach out and be ahead of time.
Products or Services
Tamilnad Mercantile Bank can be your savings bank, offering deposit services and availing loans, and comes with a variety of other value-added services like Debit Card, Credit Card, WhatsApp Banking, DigiLobby, Mobile Banking, Internet Banking, TMP My Delight Card, TMP FeePay, Missed Call facility, Demat Account, 3 in 1 Account facility, Doorstep Banking and many other solutions for your unique requirements.
Also, you can take advantage of its services like Fixed Deposits, Educational Fee Payments, E-Tax Payments, Online Bill Payment, and more.
Promoters and Holding
Tamilnad Mercantile Bank Limited is a Professionally Managed company and does not have an identifiable promoter.
The management of the company comprises:
- V. Rama Moorthy, in the position of MD & CEO
- Niranjan Sankar A., in the position of Non-Executive Director
- R. Ashok, in the position of Non-Executive Director
- Asok Kumar, in the position of P.C.G. Non-Executive Director
- Nirranjan Kani, in the position of D.N. Non-Executive Director
- Balakrishnan Prabaharan, in the position of Independent Director
- Chiranjeevi Raj C., in the position of Independent Director
- Ezhil Jothi, in the position of S. Independent Director
- Nagarajan K, in the position of Independent Director
- Vijayadurai B., in the position of Independent Director and part-time chairman of the Board
- S. Keshava Murthy, in the position of Independent Director
- Babu Suresh Kumar S., in the position of RBI Nominee Director
- Natarajan Gopal, in the position of RBI Nominee Director
- Prakash Chandra Panda, in the position of Company Secretary
- P.A. Krishnan, in the position of Chief Financial Officer
Is Tamilnad Mercantile Bank good for Investment?
With a long-term track record of a century, Tamilnad Mercantile Bank is a successful banking chain that caters to retail customers, micro, small, and medium enterprises (MSMEs), etc. Whether it is for advances or deposits, the bank brings out innovative features and offers to ease the process.
Tamilnad Mercantile Bank ignited its journey from one state, which today has grown to an immense height, and they have over 5.08 million customers presently. The bank has a dominant presence in the state of Tamil Nadu, with over 369 branches established across different sections. Alongside, it has expanded to 15 other states and 4 union territories. Presently, the banking company has 509 branches all over the country.
Tamilnad Mercantile Financial Statements
| Amount (in INR & Million) | |||
| 31-Mar-22 | 31-Mar-21 | Mar-20 | |
| Assets | 528,584.88 | 475,271.69 | 427,587.97 |
| Revenue | 46,564.35 | 42,534.02 | 39,925.29 |
| Expense | 38,345.26 | 36,500.73 | 35,848.35 |
| Profit After Tax | 9,019.02 | 6,540.43 | 4,648.92 |
Tamilnad Mercantile Bank is excelling not only in its performance in the banking segment but also with engrossing profits.
The company’s total income for the years 2022, 2021, and 2020 was Rs. 46,564.35 million, Rs. 42,534.02 million, and Rs. 39,925.29 million, respectively.
The company’s net profits for the years 2022, 2021, and 2020 were Rs. 9,019.02 million, Rs. 6,540.43 million, and Rs. 4,648.92 million, respectively.
The company’s EPS is also quite impressive compared to most companies coming up with IPOs. As for the recent period, the EPS was Rs. 57.67 on 31st March 2022.
PAT for the financial year 2022 is Rs. 9,019.02 million, 2021 is Rs. 6,540.43 million, and for 2019, it is Rs. 4,648.92 million, respectively.
| Earnings per Equity Share (in Million) | |||
| 31-Mar-22 | 31-Mar-21 | Mar-20 | |
| Basic & Diluted | 57.67 | 42.34 | 28.61 |
Tamilnad Mercantile Bank IPO Review
Tamilnad Mercantile Bank is offering 15,840,000 Equity Shares, whose price band is Rs. 500 – Rs. 525 per share, to be offered by way of a Fresh Issue.
The company is planning to utilize the funds to augment the tier – I capital base to meet capital requirements and achieve the benefits of listing.
The Tamilnad Mercantile Bank IPO only contains a Fresh Issue and does not have any offer for sale portion.
Tamilnad Mercantile IPO Details
Here are few more details you need to know before investing in Tamilnad Mercantile Bank IPO –
Tamilnad Mercantile Bank IPO Issue Object
The Tamilnad Mercantile Bank has proposed diverse objectives for making the IPO offer and some of the objectives are:
- 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 IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Strong legacy, loyal customer base and focus on improving servicing framework;
- Strong presence in Tamil Nadu with focus to increase presence in other strategic regions;
- Advances with focus on MSME, agricultural and retail segments;
- Consistently growing deposit base with focus on low-cost retail CASA;
- Professionally managed Bank with experienced senior management team and board of directors;
- Strong asset quality, underwriting practices and risk management policies and procedures; and
- Consistent financial performance.
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-22 | 57.67 | 15.40 | 374.41 |
| 31-Mar-21 | 42.34 | 13.17 | – |
| Mar-20 | 28.61 | 10.24 | – |
Tamilnad Mercantile Bank IPO Lead Managers
Here are the list of Lead managers –
- Axis Capital Limited
- Motilal Oswal Investment Advisors Limited
- SBI Capital Markets Limited
Tamilnad Mercantile IPO Registrar to offer
Check out the details of the registrar here –
Link Intime India Private Limited
Address – C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai 400083, Maharashtra, India
Tel: +91 22 4918 6200
E-mail: Tamilnad Mercantile Bank.ipo@linkintime.co.in
Website: www.linkintime.co.in
Investor grievance E-mail: Tamilnad Mercantile Bank.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
Tamilnad Mercantile Bank IPO – Other Details
- Statutory Auditor – M/s Suri & Co and M/s Abarna & Ananthan
- Legal Counsel to the Company – Shardul Amarchand Mangaldas & Co
- Bankers to the Company – Axis Bank Limited
Tamilnad Mercantile Bank IPO – Conclusion
The Tamilnad Mercantile Bank IPO is definitely a prospective opportunity for investors. The company has been in operation since 1921 and has expanded to various states and union territories of India.
It started its journey from Tamil Nadu by offering deposits, loans & advances facilities and offers numerous services under one umbrella today.
The company’s financials portray a positive front of the company, and the EPS of the company has risen well over the years. So, in conclusion, Tamilnad Mercantile Bank IPO is a good IPO to invest in.
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Tamilnad Mercantile Bank IPO Review FAQs
Check out the FAQs on Tamilnad Mercantile Bank IPO –
What is the Issue Size of Tamilnad Mercantile IPO?
The Company is making an initial public offer of 15,840,000 equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Tamilnad Mercantile IPO?
The price band for this particular IPO ranges between Rs.500 to Rs.525. As far as the face value of the share is of concern, it is Rs.10 per share.
What is the Tamilnad Mercantile IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on Sep 5, 2022, while the closing date is set at Sep 7, 2022.
What is the Tamilnad Mercantile Bank IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO.
Basis of Allotment finalization is on Sep 12, 2022, refund initiation is on Sep 13, 2022, credit of shares is on Sep 14, 2022, and share listing date is on Sep 15, 2022.
What is the Tamilnad Mercantile Bank IPO Listing Date?
Shares of this company shall be listed in the exchanges Sep 15, 2022. The date, when the listing would be done, is stagnant on Sep 15, 2022.
Who is the Registrar of Tamilnad Mercantile IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Tamilnad Mercantile Bank IPO?
Here are the promoters of this IPO – PROFESSIONALLY MANAGED. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Tamilnad Mercantile Bank IPO?
They have obtained the GMP of this IPO and it is Rs.15. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Tamilnad Mercantile Bank IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Tamilnad Mercantile Bank Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide.
PAT for the financial year 2022 is Rs. 9,019.02 million, 2021 is Rs. 6,540.43 million, and for 2019, it is Rs. 4,648.92 million, respectively.