Tamilnad Mercantile Bank Limited

About Tamilnad Mercantile Bank IPO  Set up in 1921, Nadar Bank aimed to serve the banking needs of the Nadar community in Tamil Nadu’s Tuticorin. However, it was renamed as Tamilnad Mercantile Bank in 1962. And since then, it has grown rapidly. Today, it is a leading old private sector bank in India with a history of almost 100 years.  Over the years, the bank’s journey has been marred with boardroom battles, legal tussles, and open conflicts. Despite these challenges, the bank has built a strong presence in Tamil Nadu. Besides Tamil Nadu, it is also present in 15 other states and four union territories. Overall, the bank has 509 branches and its customer base is approximately 50 lakh. Of that, around 80% of its customers have been associated with it for more than five years. While the bank’s deposits stood at ₹ 44,930 crore, its advances were at ₹ 33,490 crores, as of March 2022  And now this lender is all set to launch the Tamilnad Mercantile Bank IPO. The money raised through the fresh issue of the Tamilnad Mercantile Bank Service Ltd IPO will be used for augmenting the bank’s tier-I capital base.  Here are the key details about Tamilnad Mercantile Bank IPO:     Company Name  Tamilnad Mercantile Bank Limited   Company Type  Private    Founder's Name  T.V. Balagurusamy Nadar   Company Established On  11 May 1921    Tamilnad Mercantile Bank IPO Opening Date  5 September 2022   Tamilnad Mercantile Bank IPO Closing Date  7 September 2022    Tamilnad Mercantile Bank IPO Allotment Status  12 September 2022   Credit of Shares to the Demat Account  14 September 2022    Tamilnad Mercantile Bank IPO Listing Date  15 September 2022   Tamilnad Mercantile Bank IPO Face Value  ₹ 10 per share    Tamilnad Mercantile Bank IPO Lot Size  28 Shares   Tamilnad Mercantile Bank IPO Issue Size  ₹832 crore    Tamilnad Mercantile Bank IPO to be Listed on  NSE, BSE   Tamilnad Mercantile Bank IPO Price band  ₹500 - ₹525 per share     Financial snapshot     Particulars  FY 20  FY 21  FY 22    Net Interest Income  ₹ 1319.5 crore  ₹ 1537.5 crore  ₹ 1815.2 crore    Net Profit  ₹ 407.6 crore  ₹ 603.3 crore  ₹ 821.9 crore              How to check the Tamilnad Mercantile Bank IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Tamilnad Mercantile Bank IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your allotment status will be mentioned             Here's a quick look at Tamilnad Mercantile Bank IPO’s strengths, risks and threats  Strengths   Its Return on Assets stood at 1.6% compared to a median 0.8% for its peers, in FY22  Diversified loan book consisting of retail customers, agricultural customers, corporates and MSMEs  Its net non- performing assets (NNPA) have reduced from 1.8% in FY20 to 0.9% in FY22  Its current account saving accounts (low cost funds) to total deposit ratio rose from 25.8% in FY20 to 30.5% in FY22  Net interest margin, which is an important metric of profitability, increased from 3.6% in FY20 to 4.1% in FY21  Tamil Nadu is under-penetrated. Its bank credit to GDP stood at 53% as compared to 89% in case of Maharashtra   Risks and threats   37.7% of its paid up equity share capital is subject to outstanding legal proceedings which are pending in various forums  Its former director has filed a petition in the court, alleging mismanagement in the bank, and cited ongoing proceedings against the bank by the Directorate of Enforcement  Its business, reputation and financial results could be impacted by adverse results in the legal proceedings  Requires permission from the Reserve Bank of India to open new branches  An increase in NPAs may materially and adversely affect their business and results of operations  Deposits and advances from Tamil Nadu contributed to around 75% of its total business in FY22  The volatility in interest rates could adversely affect the financial performance            Tamilnad Mercantile Bank IPO details  | Tamilnad Mercantile Bank IPO date  The offer document filed by the company with the SEBI mentions that the Tamilnad Mercantile Bank IPO’s opening date – in other words, the Tamilnad Mercantile Bank IPO launch date – will be on 5 September 2022. The Tamilnad Mercantile Bank IPO closing date is 7 September 2022. After this, investors will be updated about the allotment status on 12 September 2022.  Investors, who have been allotted shares, can expect them to be credited in their demat account on 14 September 2022. The Tamilnad Mercantile Bank IPO listing date is 15 September 2022. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  | Tamilnad Mercantile Bank IPO Price Band  The entire IPO is a book-built issue. The Tamilnad Mercantile Bank IPO price band has been set between ₹500 and ₹525 per share. Interested investors can choose a price within this band to apply for the IPO.  The Tamilnad Mercantile Bank IPO listing price will be determined on 15 September 2022. The listing price is the price at which the shares of a company make their debut on the stock exchanges.  | Tamilnad Mercantile Bank IPO Lot size  The Tamilnad Mercantile Bank IPO details have been declared. The Tamilnad Mercantile Bank IPO lot size is set at 28 shares, and an investor can apply for a minimum of 1 lot. Individual investors applying under the retail category can apply for up to 13 lots (364 shares). Meanwhile, the Tamilnad Mercantile Bank IPO issue size is ₹832 crore.           How to pre-apply for the Tamilnad Mercantile Bank IPO?  You can pre-apply for the Tamilnad Mercantile Bank IPO before it opens for subscription on 5 September 2022. On Upstox, the pre-application for this IPO, which means pre-apply open date, will begin on 2 September 2022.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Tamilnad Mercantile Bank IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Tamilnad Mercantile Bank IPO?  If you are interested in this investment opportunity but unsure how to apply for the Tamilnad Mercantile Bank IPO, here we are listing out the steps for you.  Here’s a step-by-step guide on how to apply for the Tamilnad Mercantile Bank IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Tamilnad Mercantile Bank IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            Open a demat account with Upstox to apply for the Tamilnad Mercantile Bank IPO  To apply for the Tamilnad Mercantile Bank IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number. This is all it takes to open a demat account with Upstox. Easy and quick, right?             Upstox – trading app to apply for the Tamilnad Mercantile Bank IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Tamilnad Mercantile Bank IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.