- The private sector bank is looking to raise ₹831 crore from the public by selling 1.58 crore equity shares.
- The public issue will start from September 5 and close on September 7.
- The Thoothukudi-based lender has fixed the price band at ₹500-525 per share.
Thoothukudi-based
Tamilnad Mercantile Bank is about to launch its initial public offering (IPO) today from September 5 to September 7.
The private sector bank will raise ₹832 crore through a fresh issue of 1.58 crore shares. The lender has fixed the price band at ₹500-525 per share.
The proceeds from the IPO will be used to augment tier-I capital base to meet future capital requirements.
Here are some of the important dates related to the IPO:
Issue details
|
|
Price band
| ₹500 to ₹525
|
IPO open date
| September 5
|
IPO close date
| September 7
|
Allotment date
| September 12
|
Initiation of refunds
| September 13
|
Credit of shares to demat account
| September 14
|
IPO listing date
| September 15
|
Minimum lot
| 28
|
As of March 31, 2022, the lender has 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. Its advances portfolio primarily consists of retail customers, agricultural customers and MSMEs.
The bank has built a strong network of customers in the state of Tamil Nadu. As of March 31, 2022 Tamil Nadu contributed to 75% of its deposits and advances.
The bank is one of the oldest sector banks in India with a history of almost 100 years. It was initially formed as Nadar Bank Limited on May 11, 1921 and their name was changed to Tamilnad Mercantile Bank Limited in 1962.
Particulars
| Revenue
| Profit
|
FY22
| ₹4,656 crore
| ₹901 crore
|
FY21
| ₹4,253 crore
| ₹654 crore
|
FY20
| ₹3,992 crore
| ₹464 crore
|
The company’s implied market capitalisation stands at a range of ₹7,918 crore - ₹8,314 crore.
During FY20-22, the bank’s deposits increased at a healthy CAGR of 10.46% while its advances grew at 9.93% CAGR.
Comparison with listed industry peers:
Company
| Total revenue
| % change in 2022
|
Tamilnad Mercantile Bank
| ₹4,656 crore
|
|
City Union Bank
| ₹4,863 crore
| 29%
|
CSB Bank
| ₹2,285 crore
| -9%
|
DCB Bank
| ₹3,964 crore
| 15%
|
Federal Bank
| ₹16,502 crore
| 37%
|
Karur Vysya Bank
| ₹6,356 crore
| 48%
|
Karnataka Bank
| ₹7,175 crore
| 16%
|
RBL Bank
| ₹10,796 crore
| -8%
|
South Indian Bank
| ₹7,620 crore
| -11%
|
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