Tamilnad Mercantile Bank IPO
Tamilnad Mercantile Bank IPO — date, price band, lot size & details 2022
Tamilnad Mercantile Bank listed on 15 Sep 2022 at ₹495, 2.9% below the ₹510 issue price.
Tamilnad Mercantile Bank is one of the oldest private sector banks in India, serving MSME, agricultural and retail customers, mainly in Tamil Nadu. Its total income was Rs 4,656.44 crore in FY2022.
Stock price
Tamilnad Mercantile Bank is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 11 November.
- Open 05 Sep 2022
- Close 07 Sep 2022
- Allotment 12 Sep 2022
- Refund/credit 13 Sep 2022
- Listing 15 Sep 2022
Issue summary
The terms of the offer, as filed.
| IPO Dates | 5 to 7 Sep, 2022 |
|---|---|
| Price Band | ₹500 – ₹525 |
| Face Value | ₹10 |
| Lot Size | 28 Shares |
| Issue Size | ₹807.84 Cr |
| Sale Type | Fresh capital only |
| Listing On | BSE, NSE |
| Registrar | MUFG Intime India Private Limited |
| Min Investment | ₹ 14,280 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 28 shares at the ₹510 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 28 | ₹14,280 |
| Retail (max) | 14 | 392 | ₹1,99,920 |
| S-HNI (min) | 15 | 420 | ₹2,14,200 |
| S-HNI (max) | 70 | 1,960 | ₹9,99,600 |
| B-HNI (min) | 71 | 1,988 | ₹10,13,880 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 5
- 01Profit after tax rose from Rs 464.89 crore in FY2020 to Rs 901.90 crore in FY2022.
- 02The P/E was 8.06 at the issue price of Rs 510, based on pre-issue EPS of Rs 63.29.
- 03Net worth grew from Rs 3,979.65 crore on 31 March 2020 to Rs 5,335.71 crore on 31 March 2022.
- 04Long-standing customers of more than five years made up 79.78% of the base and 77.93% of deposits.
- 05The whole Rs 807.84 crore issue was fresh capital for the bank.
Risks · 5
- 01The bank is concentrated in Tamil Nadu, with 369 of its 509 branches there.
- 02Lending to MSME and agricultural customers can carry higher credit risk in downturns. Assets were Rs 52,858.49 crore on 31 March 2022.
- 03The bank has no identifiable promoter, so no single group is accountable as promoter. The post-issue market value was Rs 8,075.92 crore.
- 04Total income grew slowly, from Rs 3,992.53 crore in FY2020 to Rs 4,656.44 crore in FY2022.
- 05The issue price was fixed at Rs 510, below the upper band of Rs 525.
Three years of numbers
All figures in ₹ crore, as reported in the Tamilnad Mercantile Bank offer document.
| Metric | 31 Mar 2022 | 31 Mar 2021 | 31 Mar 2020 |
|---|---|---|---|
| Assets | 52,858.49 | 47,527.17 | 42,758.80 |
| Total Income | 4,656.44 | 4,253.40 | 3,992.53 |
| Profit After Tax | 901.90 | 654.04 | 464.89 |
| NET Worth | 5,335.71 | 4,579.98 | 3,979.65 |
| Reserves and Surplus | 5,193.20 | 4,437.47 | 3,837.14 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the Tamilnad Mercantile Bank RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
Tamilnad Mercantile Bank IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹63.29 | ₹56.96 |
| P/E Ratio (x) | 8.06 | 8.95 |
| Market Cap at Offer Price (₹ Cr) | ₹7,267.64 | ₹8,075.30 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹510 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹765.01 Cr of the issue is earmarked to named objects.
About the company
It offers banking and financial services mainly to micro, small and medium enterprises, agricultural and retail customers.
On 31 March 2022 it had 509 branches, of which 106 were rural, 247 semi-urban, 80 urban and 76 metropolitan, and a customer base of about 5.08 million. It has 369 branches in Tamil Nadu and is present in 15 other states and 4 union territories. Customers of more than five years made up 79.78% of its customers.
The IPO was Rs 807.84 crore and was entirely fresh issue. The money was meant to strengthen the bank's Tier-I capital. The bank has no identifiable promoter.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Tamilnad Mercantile Bank IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
SBI Capital Markets Ltd.
70 issues handledBest listing: Bajaj Housing Finance (+114.3%). Weakest: Kalyan Jewellers India (-15.0%).
Axis Capital
126 issues handledBest listing: Latent View Analytics (+160.0%). Weakest: Shriram Properties (-23.7%).
Motilal Oswal Investment Advisors
58 issues handledBest listing: G R Infraprojects (+105.0%). Weakest: R K Swamy (-13.2%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of Tamilnad Mercantile Bank?
The current Grey Market Premium is ₹35, or 7% over the issue price.
What is the Tamilnad Mercantile Bank IPO price band?
₹500 to ₹525, on a face value of ₹10.
When is the allotment?
The basis of allotment is 12 September 2022, with listing on 15 September 2022.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — MUFG Intime India Private Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
