Tamilnad Mercantile Bank Ltd IPO

Incorporated in 1983, Kolkata-based Tarsons Products manufactures laboratory products that are used in various research organisations, pharmaceutical companies, academia institutes, hospitals and diagnostic centres.

The company plans to go public and here’s all you need to know about this IPO.

Here’s the consolidated financial information for the last three years:

• Strong legacy, loyal customer base and focus on improving servicing framework;
• Strong presence in Tamil Nadu with focus to increase presence in other strategic regions;
• Advances with focus on MSME, agricultural and retail segments;
• Consistently growing deposit base with focus on low-cost retail CASA;
• Professionally managed Bank with experienced senior management team and board of directors;

• 37.73% of its paid up equity share capital or 53.76 million Equity Shares are subject to outstanding legal proceedings which are pending at various forums and, in connection with which, proceedings against the Bank have been initiated by various regulatory authorities, including the RBI, the Directorate of Enforcement, some of whom have imposed and sought to impose penalties on it in the past. The bank cannot assure you that these matters will be resolved in a timely manner or at all and any adverse developments in such proceedings could result in the imposition of injunctions or penalties or require it to incur significant costs to contest any of which could have a material impact on its reputation, business, financial condition and results of operation.
• Its business, reputation and financial results could be impacted by adverse results in legal proceedings. The company has also issued notices and initiated various recovery proceedings against defaulting borrowers under the SARFAESI Act and failure by such borrowers to repay the outstanding borrowings pursuant to such notices and proceedings may adversely affect its business. the bank is also susceptible to operational risks, including fraud, petty theft, negligence and embezzlement by its employees or its customers, which could harm its results of operations and financial position.
• The company has received and may in the future receive multiple anonymous whistle blower complaints, which may adversely affect its reputation which could consequently adversely impact its business, financial condition and results of operation.
• Its former director has filed a writ petition before the High Court of Madras seeking to prevent the Bank from undertaking the Offer, and the bank has received multiple complaints from former directors and shareholders of the Bank regarding disclosures in the Draft Red Herring Prospectus and invitations to participate in the offer for sale, any or all of which could harm it by impairing it ability to retain clients, subject the bank to significant legal liability, cause reputational harm or prevent it from proceeding with this Offer.
• The company has regional concentration in southern India, especially Tamil Nadu. Any adverse change in the economic, political, or geographical conditions of Tamil Nadu and other states in which its operate can impact the bank results of operations.

• Continue to strengthen its product portfolios across deposits and advances
• Transformation through technology to improve efficiency and customer experience
• Continue to improve asset quality
• Continue to strengthen its product portfolios across deposits and advances
• Transformation through technology to improve efficiency and customer experience