About the Company:
Tamilnad Merchantile Bank Ltd is one of the oldest and leading old private sector banks in India with a history of almost 100 years
Company offers a wide range of banking and financial services primarily to micro, small and medium enterprises (“MSME”), agricultural and retail customers (“RAM”).
As of March 31, 2022, company had 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres.
Company’soverall customer base is approximately 5.08 million as of March 31, 2022.
Over the years company 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”) as of March 31, 2022.
As of March 31, 2022, company’s deposits and advances portfolio in the state of Tamil Nadu has contributed 75.06% to the Total Business.
Company’s History:
Company was incorporated as ‘Nadar Bank Limited’ in 1921 and name was changed to ‘Tamilnad Mercantile Bank Limited’ in the year 1962.
Company received the license to carry on banking business from the Reserve Bank of India (the “RBI”) in 1962.
Company’s advances portfolio primarily consists of lending to (a) Retail customers; (b) agricultural customers and (c) MSMEs.
MSMEs:
- Company primarily offer various loan products to MSME customers operating in manufacturing, trading and services sector.
- During the Fiscal 2022 MSMEs contributed 37.38% to total advances with a CAGR of 8.55% from March 31, 2020 to March 31, 2022.
Agricultural customers:
- Company primarily offer loan products to individual farmers, group of farmers and agricultural corporates.
- During the Fiscals 2020, 2021 and 2022 agricultural customers contributed 24.77%, 27.41% and 29.70% respectively to our total advances with a CAGR of 19.70% from March 31, 2020 to March 31, 2022.
Retail customers:
- Company primarily offer home loans, personal loans, auto loans, educational loans as well as security backed loans of various types to our retail customers.
- During the Fiscals 2020, 2021 and 2022 retail customers contributed 19.27%, 20.60% and 20.39% respectively to our total advances with a CAGR of 12.46% from March 31, 2020 to March 31, 2022.
Corporate customers:
Company offers various kinds of loans to corporates, in textiles and other industries, with our assortment of banking products and services including working capital, term financial, trade financial, structured finance services, foreign exchange business funding in domestic and foreign currencies.
Company’s Presence:
Other than Tamil Nadu, company is present in 15 other states and 4 union territories of India.
Apart from Tamil Nadu, company has a sizable presence in the states of Maharashtra, Gujarat, Karnataka, and Andhra Pradesh with presence across 90 branches and 125 ATMs and 18 CRMs as of March 31, 2022.
Company has also been consistently growing the customer base from approximately, approximately 4.66 million as of March 31, 2020 to approximately 4.91 million as of March 31, 2021 to approximately 5.08 million as of March 31, 2022.
Management Team:
- Mr. K.V. Rama Moorthy (Designation: MD & CEO)
- Mr. Niranjan Sankar A. (Designation: Non – Executive Director)
Objectives of the Issue:
Fresh Issue: (Rs.831.6 cr)
- Bank proposes to utilize the Net Proceeds towards augmenting its Tier–I capital base to meet its future capital requirements.
Positives for the Company:
- 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.
- Consistent financial performance.
Financials of the Company:
| (in Crores) | FY 20 | FY 21 | FY 22 |
|---|---|---|---|
| Revenue | 3992.5 | 4253.4 | 4656.4 |
| Net Profit | 464.8 | 654.0 | 901.9 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 5th September 2022 |
| Issue Closes on:. | 7th September 2022 |
| Issue Price | Rs.500 – 525 |
| Face Value | Rs.10 |
| Retail Category Allocation | 10% |
| Minimum Lot | 28 Shares |
| Minimum Investment | Rs.14,700 |
| Issue Constitutes | 10% |
| Issue Size | Rs.831.6 cr ($ 103 million) |
| Market Cap | Rs.8313 cr ($ 1.03 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,58,40,000 |
| Equity Shares Prior to the issue | 14,25,11,454 |
| Equity Shares after the issue | 14,25,51,454 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 12th September 2022 |
| Initiation of Refunds | on or Before 13th September 2022 |
| Credit of Equity Shares: | on or Before 14th September 2022 |
| Listing Date: | on or Before 15th September 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 57.67 | 9.10 | 15.40% | 374.41 |
| Check IPO Allotment Status: |
|---|
Link InTime Website: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Tamilnad Merchantile Bank Ltd No. 57, Victoria Extension Road Thoothukudi – 628 002 Tamil Nadu, India Tel.: +91 461 2325136 Email: secretarial@tmbank.in Website: www.tmb.in |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 E-mail: tmb.ipo@linkintime.co.in Website: www.linkintime.co.in |
