Tamilnad Mercantile Bank IPO: The initial public offering (IPO) of private sector lender Tamilnad Mercantile Bank Ltd opens next week. The issue of one of the oldest lenders of the country will open on September 5th and close on September 7th. The price band of the ₹800 crore IPO has been fixed at ₹500 – 525 and the lot size is 28 shares and in multiple thereof. Tuticorin-based Tamilnad Mercantile Bank is one of the oldest private sector banks in the country, with a history of almost 100 years. It offers a wide range of banking and financial services primarily to Micro, Small and Medium Enterprises (MSME), agricultural and retail customers.
The UPI mandate acceptance time for retail and NII bidders (bids up to ₹5 lakh) will expire at 5 pm on the closing day of the IPO (September 07). 10% of the issue of Tamilnad Mercantile Bank IPO is reserved for retail investors.
The private sector lenders current account and savings account deposits or CASA deposits to total deposits stood at 30.50%.
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Its net profits increased at a CAGR of 41.99% during fiscal 2020-22, with the bank reporting net profit at ₹820 crore during fiscal 2022.
Tamilnad Mercantile Bank is also well-capitalised with a tier-1 capital adequacy ratio of 20.44%.
As of March 31, 2022, the lender had 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres.
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Tamilnad Mercantile Bank has a strong presence in Tamil Nadu, with 369 branches.
The bank reported deposits of ₹44,930 crore and advances of ₹ 33,490 crore as of March 2022.
Tamilnad Mercantile Bank IPO details in 10 points
1] Tamilnad Mercantile Bank IPO subscription: The public issue will open for subscription on 5th September and it will remain open for bidding till 7th September 2022.
2] Tamilnad Mercantile Bank IPO price: The company has fixed price band of the public offer at ₹500 to ₹525 per equity share.
3] Tamilnad Mercantile Bank IPO size: The company aims to raise ₹831.60 crore from this public issue.
4] Tamilnad Mercantile Bank IPO lot size: A bidder will be able to apply in lots and one lot will comprise 28 company shares.
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5] Tamilnad Mercantile Bank IPO application limit: A retail investor can apply for minimum one lot and maximum 13 lots. This means a retail investor can apply for up to 13 lots of the public offer.
6] Tamilnad Mercantile Bank IPO investment limit: A retail investor can invest minimum ₹14,700 and maximum ₹1,91,100 in this issue.
7] Tamilnad Mercantile Bank IPO allotment date: The tentative date for share allocation is 12th September 2022.
8] Tamilnad Mercantile Bank IPO listing: The public issue is proposed for listing on both NSE and BSE.
9] Tamilnad Mercantile Bank IPO listing date: Shares of the company are likely to list on BSE and NSE on 15th September 2022.
10] Tamilnad Mercantile Bank IPO registrar: Link Intime India Private Ltd has been appointed as official registrar of the public issue.
