Tamilnad Mercantile Bank has sent the notice to its shareholders for the Annual General Meeting (AGM), and the final decision on all the points which will be discussed in the AGM will be made public on 09.04.2020. We will list the most important points to be discussed in the AGM. 1. Reduction of the Authorized Share Capital from 500 Cr at FV=10, to 280 Cr at FV=10. It implies that TMB is reducing its total authorized shares from 50 Cr to 28 Cr, by canceling 22 Cr shares. The reduction of capital is done for numerous reasons, including increasing shareholder value and producing a more efficient capital structure. 2.  The bank is planning to issue 1,58,40,000 Equity Shares via IPO( Initial Public Offering ) and 71,25,570 Equity shares via OFS( Offered for Sale ). 3. The company may issue Pre-IPO shares to investors before IPO. However, the IPO size will not exceed 1,58,40,000. 4. Once it is approved, the company will file DRHP soon. UnlistedZone Take: From the above extract, it is clear that TMB bank's management is looking to come up with an IPO soon, however, the question is at what value the IPO will come? Small Stats of TMB bank as on 31.12.2019: (i) Total Business= 62,544 Cr (ii) Total Deposit =  35,174 Cr (iii) Total Advances = 27,369 Cr (iv) Net-Profit(9M)= 243 Cr (v) Net-NPA = 2.13% (vi) Book Value = 267 As of 31.12.2019, the TMB has a book value of 267. So, if you give a book value multiple of 2-2.5x, the IPO price could be in the range of 520 to 667. However, given the poor condition of the economy and market, it would be a million-dollar question, the value merchant bankers give to the bank in IPO. Extract of AGM