Tamilnad Mercantile Bank Limited IPO Details - TMB IPO

 

Tamilnad Mercantile Bank Logo

 

Offer Period

September 5, 2022, to September 7, 2022

Price Band

Rs. 500 to Rs.525

Lot Size

28 Shares

Issue Size

Rs. 832 Cr

Allotment Date

September 12, 2022

Listing Date

September 15, 2022

 

TMB Limited Company Overview

TMB is one of the private sector banks in India incorporated as ‘Nadar Bank Limited’ in 1921 and changed its name to ‘Tamilnad Mercantile Bank Limited in 1962. TMB offers a wide range of banking and financial services primarily to Retail, Agricultural, & Micro, small, and medium enterprises (“RAM”). Since its incorporation in 1921, TMB has been headquartered in Thoothukudi, Tamil Nadu, India.

As of June 30, 2021, the company has 509 branches and 1,139 ATMs across 16 states and 4 Union Territories. Tamil Nadu (TN), one of the fastest growing states in India, is the stronghold of TMB, and as on March 2021, TN contributes 76.33% of the total business of TMB.

As on March 31, 2021, the advances given by TMB were Rs. 31,541.03 Cr, and the loan book is as follows:

Mar-21

Contribution %

Contribution

Value (Rs. in Cr)

Retail Customers

20.60%

6,497.45

Agricultural Customers

27.41%

8,645.40

MSME's

39.08%

12,326.23

Corporate Customers

12.92%

4,075.10

   

31,541.03

 

The contribution of advances for the last 3 years is as shown below:

Year

Mar-19

Mar-20

Mar-21

3 Yr. CAGR

Retail Customers

16.78%

19.27%

20.60%

7.08%

Agricultural Customers

22.49%

24.77%

27.41%

6.82%

MSME's

37.32%

37.92%

39.08%

1.55%

Corporate Customers

23.40%

18.04%

12.92%

-17.96%

 

The key financials of TMB are as follows:

 

Mar-19

Mar-20

Mar-21

3 Year Growth

Net Interest Earning Assets

32,244.57

34,661.12

36,090.93

3.83%

Net Interest-Bearing Liabilities

19,943.05

21,465.92

20,715.25

1.27%

Net Interest Income

12,301.52

13,195.20

15,375.28

7.72%

Net Interest Income Margin

3.65%

3.64%

3.77%

1.08%

Net Profit Before Tax

3,964.97

5,848.97

7,983.56

26.28%

Net Profit After Tax

2,585.80

4,076.94

6,033.29

32.63%

 

Key Strengths of TMB

  1. TMB has an experience of about 100 years in the business

  2. The Company has diversified its loan portfolio across MSMEs, Retail & agricultural loans and reducing corporate loan books.

  3. As 73% of the current business is from Tamil Nadu, huge scope for growth is visible to scale its business across PAN India through the IPO.

 

Key Risks of TMB
  1. Geographical Concentration is the primary risk currently the Company faces; as the Company's primary business contributor is Tamil Nadu, any geographical risks the state faces can adversely affect the business.

  2. As 39% of the advances are towards MSMEs, any negative impact like raising NPA's from MSMEs can affect the bank's performance.

 

Peer Comparison

Name of the
Company

Revenue
(Rs in Cr)

Face
Value (₹)

P/E

EPS
(Basic) (₹)

Return on Net
Worth (%)

Tamilnad Mercantile Bank

4,253.40

10

12.39(*)

42.34

13.17

CUB Limited

4,839.45

1

18.26

8.03

10.15

DCB Bank Limited

3,916.71

10

8.00

10.82

8.94

Karur Vysya Bank LTD

6,527.07

2

8.97

4.50

5.16

 

How to Apply for TMB IPO
  1. Go to https://ipo.adityatrading.in/

  2. Enter your client ID

  3. Enter the OTP received in your registered mobile number.

  4. Choose the IPO and click on apply button.

  5. Enter the UPI ID, Quantity, and Cut off price.

  6. Click on submit button

  7. Confirm the mandate the mandate request received on your phone by entering the UPI Pin.

  8. You can also watch our youtube video on “How to Apply on IPO”

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