Tamilnad Mercantile Bank to Open on Sep 5 to Sep7 | Espresso


Tamilnad Mercantile Bank to Open on Sep 5-Check IPO Details Issue Date Price

September 01, 2022
Tamilnad Mercantile Bank to Open on Sep 5-Check IPO Details Issue Date Price

Tamilnad Mercantile Bank is coming out with a fresh public issue to raise Rs 832 crores from the market.

Below are the details of the Dreamfolks Services Limited IPO price, the Tamilnad Mercantile Bank issue size and other such details :

  • Issue opens – Sep 5 (Monday)
  • Issue closes – Sep 7 (Wednesday)
  • Issue size – Rs 832 crores
  • Price band – Rs 500 to 525 per equity share
  • Bid lot – 28 shares and in multiples thereof

And here are some details of the company and further details on the Tamilnad Mercantile Bank issue.

Company details:

  • Tamilnad Mercantile Bank (“TMB”) was incorporated on May 11, 1921. TMB, headquartered at Thoothukudi (Tamil Nadu, India), is one of the oldest and leading old private sector banks in India, with a history of close to 100 years. The bank reported deposits of ? 44,930 crore and advances of ? 33,490 crore as of March 2022.
  • During fiscals 2020-22, TMB’s deposits increased at a healthy CAGR of 10.46% (compared with peer median:7.90%), falls in Top-5 amongst its peers; while its advances increased at a CAGR of 9.93% (compared with peer median: 8%).
  • TMB’s current account and savings account deposits to total deposits are also competitive among peers at 30.50%.
  • TMB’s net profits increased at a CAGR of 41.99% during fiscal 2020-22, with the bank reporting second highest net profit at ? 820 crore during fiscal 2022 amongst the peers.
  • In fiscal 2022, TMB also reported a comparatively low credit cost ratio of 0.27%. The Bank’s return on assets (RoA) was at 1.66% compared with peers that have a median RoA of 0.80%.
  • The trend is similar in the Return on Equity ratio, where the company outperformed peers at 16.58% in fiscal 2022, while its peers reported a median of 8.30%. TMB is also well-capitalised with a tier-1 capital adequacy ratio of 20.44%.
  • As of March 31, 2022, they have 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres
  • TMB has built a strong presence in the state of Tamil Nadu, with 369 branches and 949 automated teller machines (“ATMs”) and 255 cash recycler machines (“CRMs”), 91 E-Lobbies, 3,939 PoS as of March 31, 2022.

Issue break-up:

  • QIB – 75% of the offer – Rs 623.70 crores
  • NIB – 15% of the offer – Rs 124.74 crores
  • RET – 10% of the offer – Rs 83.16 crores

Listing: NSE and BSE

Registrar: Link Intime India Private Limited

UPI: All retail applications through brokers are compulsorily in UPI mode

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