Mr. K.V. Rama Moorthy, Managing Director and Chief Executive Officer, Tamilnad Mercantile Bank Limited addressing the gathering on the announcement of bank’s Initial public Offer (IPO).
(L-R): Mr. P. Suriaraj, General Manager, Treasury, Tamilnad Mercantile Bank Limited; Mr. K.V. Rama Moorthy, Managing Director and Chief Executive Officer, Tamilnad Mercantile Bank Limited and Mr. P.A. Krishnan, Chief Financial Officer, Tamilnad Mercantile Bank Limited at the press conference in connection to their Initial public Offer (IPO).
(L-R): Mr. Manish Jain, SVP – BFSI, Axis Capital Limited; Mr. P. Suriaraj, General Manager, Treasury, Tamilnad Mercantile Bank Limited; Mr. K.V. Rama Moorthy, Managing Director and Chief Executive Officer, Tamilnad Mercantile Bank Limited and Mr. P.A.Krishnan, Chief Financial Officer, Tamilnad Mercantile Bank Limited, Ratnadeep Acharyya, Senior Vice President, SBI Capital Markets Limited and Subrat Panda, Director, Motilal Oswal Investment Advisors Limited at the press conference in connection to their Initial public Offer (IPO).
Tamilnad Mercantile Bank Ltd (TMB) Logo
Price Band fixed at ₹ 500 to ₹ 525 per equity share of face value of ₹ 10 each (“Equity Shares”)
- Bid /Offer Opening Date – Monday, September 05, 2022 and Bid/ Offer Closing Date – Wednesday, September 07, 2022
- The Floor Price is 50.00 times the face value of the Equity Shares and The Cap Price is 52.50 times the face value of Equity Shares
- Bids can be made for a minimum of 28 Equity Shares and in multiples of 28 Equity Shares thereafter
MUMBAI, AUGUST 30, 2022 (GPN): Tuticorin-based Tamilnad Mercantile Bank Limited (TMB) will open its Initial Public Offering (IPO) on Monday September 05, 2022. The total offer size of up to 15,840,000 Equity Shares of face value of ₹ 10 each comprising of fresh issue of up to 15,840,000 Equity Shares (the “Offer”).
The Price Band of the Offer has been fixed at ₹ 500 to ₹ 525 per Equity Share of face value ₹ 10 each. Bids can be made for a minimum of 28 Equity Shares and in multiples of 28 Equity Shares thereafter.
Bank proposes to utilise net proceeds of the fresh issue towards augmentation of Bank’s Tier-I capital base to meet Bank’s future capital requirements which are expected to arise out of growth in the Bank’s assets, primarily the Bank’s loans/advances and investment portfolio and to ensure compliance with regulatory requirements on capital adequacy prescribed by the Reserve Bank of India from time to time.
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 Offer is being made through the book building process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(2) of the SEBI ICDR Regulations, wherein not less than 75 % of the Offer shall be allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”, the “QIB Portion”), provided that the Bank may, in consultation with the Book Running Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion.
Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs.
Further, not more than 15% of the Offer shall be available for allocation to Non-Institutional Bidders (“Non-Institutional Portion”) of which one-third of the Non-Institutional Portion shall be available for allocation to Bidders with an application size of more than ₹ 200,000 and up to ₹ 1,000,000 and two-thirds of the Non-Institutional Portion shall be available for allocation to Bidders with an application size of more than ₹ 1,000,000 and under-subscription in either of these two sub-categories of Non-Institutional Portion may be allocated to Bidders in the other subcategory of Non-Institutional Portion in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price.
Further, not more than 10% of the Offer shall be available for allocation to Retail Individual Bidders (“Retail Portion”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective ASBA accounts, and UPI ID in case of UPI Bidders using the UPI Mechanism, if applicable, in which the corresponding Bid Amounts will be blocked by the SCSBs or by the Sponsor Bank under the UPI Mechanism, as the case may be, to the extent of respective Bid Amounts. Anchor Investors are not permitted to participate in the Offer through the ASBA process.
The UPI Mandate acceptance time for Retail and NII bidders (bids up to ₹ 5,00,000) shall expire at 5:00 PM on the closing day of the IPO i.e., September 07, 2022.
The public issue is proposed for listing on both NSE and BSE.
Link Intime India Private Ltd has been appointed as official registrar of the public issue.
Axis Capital Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited are the Book Running Lead Managers (“BRLMs”) to the issue.
Headquartered in Thoothukudi (Tamil Nadu), the bank had filed its draft red herring prospectus (DRHP) in early September 2021 and subsequently with the NSE and BSE.
Mr. K.V. Rama Moorthy MD and CEO Tamilnad Mercantile Bank informed GPN that as of today, there are 509 branches cutting across demographics and areas. The concentration has been more in semi urban and rural areas, especially in Tamilnadu, The bank proposes to expand it’s business in Mumbai with addition of more branches in Mumbai this year. TamilNad Mercantile Bank is present in 15 states and 4 union territories.
Mr Moorthy says, “We have been evolving as an organisation that is known for its relationship based banking. Our staff is empowered to take this relationship banking to the next level. We have almost 1400 ATMs, and our mobile banking and internet based banking network is at par with the best organisations in the country. We are creating e-lobbies to ease the banking process for the customers, and the 100th e-lobby was inaugurated on the occasion of TamilNad Mercantile Bank’s centenary celebrations.We have developed advanced and enhanced Mobile banking system touching lives of our customers with ease of Banking.”
He further added, “Our culture is only relationship based banking, and customer service is the watchword. Over the year’s we have gained confidence of our Customers with our Banking and it’s policies.”
As at March-end 2022, the top 10 shareholders of the bank included Robert and Ardis James Company (4.94 per cent); Starship Equity Holdings (4.72 per cent); Subcontinental Equities (4.64 per cent); East River Holdings (3.72 per cent); Swiss Re Investors (Mauritius) Ltd (3.55 per cent); FI Investments (Mauritius) Ltd (1.89 per cent); and Shanmuga Priya (1.66 per cent).
The century-old private sector bank reported a 36 per cent year-on-year (y-o-y) increase in net profit to ₹822 crore in FY22 against ₹603 crore in FY21.
Net interest income was up about 18 per cent y-o-y at ₹1,815 crore in FY22 (₹1,538 crore in FY21). Other income rose about 28 per cent y-o-y to ₹823 crore (₹644 crore).
Net interest income was up about 18 per cent y-o-y at ₹1,815 crore in FY22 (₹1,538 crore in FY21). Other income rose about 28 per cent y-o-y to ₹823 crore (₹644 crore).
Provisions and contingencies increased about 18 per cent to ₹705 crore (₹599 crore).
Deposits were up about 10 per cent y-o-y at ₹44,933 crore as at March-end 2022. Gross advances rose about 7 per cent y-o-y at ₹33,748 crore.
Gross non-performing assets (GNPAs) declined to 1.69 per cent of gross advances as at March-end 2022, against 3.44 per cent as at March-end 2021. Net NPAs declined to 0.95 per cent of net advances against 1.98 per cent.The board of directors had recommended a final dividend of ₹10 per equity share of ₹10 face value.Ends
Note-The RHP shall be available on the website of SEBI at www.sebi.gov.in, websites of the Stock Exchanges i.e. BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com, respectively, and is available on the websites of the BRLMs, i.e. Axis Capital Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited at www.axiscapital.co.in, www.motilaloswalgroup.com and www.sbicaps.com, respectively.
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