Tamilnad Mercantile Bank IPO GMP, Most Important detail 2021

With a nearly 100-year existence, Tamilnad Mercantile Bank Limited is one of India’s oldest and most prestigious private sector banks (Source: CRISIL Report). Tamilnad Mercantile Bank IPO will hit the stock market in November 2021.

About Tamilnad Mercantile Bank

Tamilnad Mercantile Bank principally serve micro, small, and medium-sized businesses (“MSME”), agricultural, and retail clients (“RAM”) with a comprehensive range of banking and financial services. According to CRISIL, Among their peers, they earned the second highest Net Profit in Fiscal 2021.

They have 509 outlets as of June 30, 2021, with 106 in rural, 247 in semi-urban, 80 in urban, and 76 in metropolitan areas.

As of June 30, 2021, they had about 4.93 million clients, with 3.45 million (69.96%) having been with them for more than five years.

They are contributing 275,619 million (67.02%) to their deposit and 179,638.99 million (57.56%) to their advances portfolios.

Journey

In 1921, they were founded as ‘Nadar Bank Limited,’ and in 1962, they changed their name to ‘Tamilnad Mercantile Bank Limited.’ In 1962, the Reserve Bank of India granted them permission to do banking activity.

They have a huge foothold in the state of Tamil Nadu, with 369 offices, 941 automated teller machines, and 238 cash recycling machines, since their inception in Thoothukudi, Tamil Nadu, India.

With a continuous focus on MSME and the textile industry, Tamil Nadu, India’s fourth largest state, is among the fastest expanding states.

In Tamil Nadu, their deposits and advances portfolio accounted for 76.33 percent of their total business.

Growth in other Sates

They also place a strong emphasis on broadening their business into other high-growing regions of India, which will assist them expand their network and client base. They are located in 15 additional Indian states and four union territories, in addition to Tamil Nadu.

Aside from Tamil Nadu, they have a significant presence in Maharashtra, Gujarat, Karnataka, and Andhra Pradesh, with 90 offices, 123 ATMs, and 15 CRMs as of June 30, 2021.

From Fiscal 2019 to Fiscal 2021, they have continually grown their client base from roughly 4.42 million on March 31, 2019, to roughly 4.66 million on March 31, 2020, and to about 4.91 million on March 31, 2021, at a CAGR of 5.38 percent.

Tamilnad Mercantile Bank IPO

Tamilnad Mercantile Bank Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 15,840,000 equity share on 04 September 2021.

The offer includes 15,827,495 equity shares fresh equity shares and There is an offer for sale (OFS) of 12,505 equity shares by the principal shareholders mentioned in the DRHP.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Originally published at https://profitmust.com on September 6, 2021.