Tamilnad Mercantile Bank IPO opens for subscription on September 5

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The Tamilnad Mercantile Bank Ltd’s initial public offering (IPO) will open for subscription on September 5 and end on September 7, making it the latest in a long line of corporations wanting to go public.

The IPO is a new issue of 1.58 billion shares. The issue’s lead managers are Axis Capital, Motilal Oswal, and SBI Capital Markets.

Tamilnad Mercantile Bank, one of the country’s oldest private sector banks, provides a variety of banking and financial services primarily to micro, small, and medium companies, agricultural, and retail consumers.

The anchor book auction will begin on September 2. On September 14, shares will be allocated to successful investors’ dematerialized accounts, and the stock will make its market debut on September 15.

The revenues will be used to boost the Thoothukudi (previously Tuticorin)-based private lender’s tier-I capital base in order to meet its capital needs.

The lender must maintain a minimum CRAR of 11.5 percent by March 31, 2022. Its Tier I capital adequacy ratio was 20.46 percent, and it has Rs 5231.77 crore in Tier I capital.

The bank’s gross non-performing assets were 1.69 percent in FY22, down from 3.44 percent the previous year. Net NPAs were 0.95 percent, down from 1.98 percent the previous year.

Its CASA ratio, which compares deposits in current accounts and savings accounts to total bank deposits, increased to 30.5 percent in FY22 from 28.52 percent previously.

Total deposits increased from Rs 40,970.42 crore to Rs 44,933.12 crore, while advances increased from Rs 31,069.60 crore to Rs 33,491.54 crore.

The net profit for the year increased by 36% to Rs 821.91 crore from Rs 603.33 crore the previous year. Net interest income rose 18% to Rs 1815.23 crore.

In Tamil Nadu, the bank has 4.18 million customers, accounting for 85.07 percent of its total customer base of 5.08 million. Its presence is also felt in Gujarat, Maharashtra, Karnataka, and Andhra Pradesh.

The lender had 509 branches as of March 31, 2022, including 106 in rural areas, 247 in semi-urban areas, 80 in urban areas, and 76 in metropolitan areas.

Financial Performance:

Particulars On 31 March, 22 (Amount in INR Cr.) On 31 March, 21 (Amount in INR Cr.)
Total Income 6674.41 6283.9
Total Expenses 1815.88 1578.54
Profit Before Tax 821.92 603.33
Profit After Tax 821.92 603.33
Face Value 10 10


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