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Tamilnadu Mercantile Bank Limited is one of the oldest and leading old private sector banks in India with a history of almost 100 years.
The bank filed its preliminary papers in September 2021 and got approval from the Securities Exchange Board of India (SEBI) to come up with the Initial Public Offer (IPO) on 30th May 2022.
As per the draft red herring prospectus, the entire public offer of Tamilnad Mercantile Bank Limited comprises a fresh issue of 1,58,27,495 Equity Shares and an Offer for Sale (OFS) of up to 12,505 Equity Shares by the selling shareholders.
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The bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting its Tier–I capital base to meet its future capital requirements. Further, the Gross Proceeds from the Fresh Issue will also be used towards meeting the expenses in relation to the Offer.
About TMB: They offer a wide range of banking and financial services primarily to micro, small and medium enterprises (“MSME”), agricultural and retail customers (“RAM”). As of June 30, 2021, they have 509 branches, of which 106 branches are rural, 247 in semi-urban, 80 in urban, and 76 in metropolitan centers.
Their overall customer base is approximately 4.93 million as of June 30, 2021, and 3.45 million or 69.96% of their customers have associated with them for a period of more than five years and have contributed to ₹ 275,619 million or 67.02% to their deposits and ₹ 179,638.99 million or 57.56% to their advances portfolios as of June 2021.
As per the CRISIL Report, they had the second-highest Net Profit for Fiscal 2021 amongst their Peers, and their Return on Assets was also higher at 1.3% compared to a median of 0.7% for their peers for Fiscal 2021.
-by Gautam
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