Tamilnad Mercantile Bank’s ₹832 crore IPO to open today

• The private sector bank is looking to raise ₹831 crore from the public by selling 1.58 crore equity shares.
• The public issue will start from September 5 and close on September 7.
• The Thoothukudi-based lender has fixed the price band at ₹500-525 per share.

Thoothukudi-based Tamilnad Mercantile Bank is about to launch its initial public offering (IPO) today from September 5 to September 7.

The private sector bank will raise ₹832 crore through a fresh issue of 1.58 crore shares. The lender has fixed the price band at ₹500-525 per share.

The proceeds from the IPO will be used to augment tier-I capital base to meet future capital requirements.

Here are some of the important dates related to the IPO:
As of March 31, 2022, the lender has 509 branches, of which 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. Its advances portfolio primarily consists of retail customers, agricultural customers and MSMEs.

The bank has built a strong network of customers in the state of Tamil Nadu. As of March 31, 2022 Tamil Nadu contributed to 75% of its deposits and advances.

The bank is one of the oldest sector banks in India with a history of almost 100 years. It was initially formed as Nadar Bank Limited on May 11, 1921 and their name was changed to Tamilnad Mercantile Bank Limited in 1962.
The company’s implied market capitalisation stands at a range of ₹7,918 crore - ₹8,314 crore.

During FY20-22, the bank’s deposits increased at a healthy CAGR of 10.46% while its advances grew at 9.93% CAGR.

Comparison with listed industry peers:


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