Tamil Nadu Mercantile Bank’s three-day initial public offering (IPO) will open for public subscription today and will end on Wednesday, September 7. Tuticorin-based private sector lender has fixed the price band 500-525 per share. The lender said on Friday that it has raised slightly more 363 crore from anchor investors prior to its issue.
Tamil Nadu Mercantile Bank IPO There is a fresh issue of 1.58 crore equity shares. At the upper end of the price band, the bank is expected to raise 831.6 crore through its initial share sale. The Bank proposes to utilize the proceeds from the issue to enhance its Tier-I capital base to meet future capital requirements.
As per market observers, Tamil Nadu Mercantile Bank shares are available at Premium (GMP) Today in Gray Market 25. The Company’s Shares are expected to be listed on the Stock Exchanges BSE and NSE on Thursday, 15th September, 2022.
Yes Securities has given subscribe rating to IPO As it finds that TMB’s asset quality results have reached a stage that can be considered stable and benign, credit growth performance and TMB’s outlook are reasonable, with operating expense control results being reasonable, Cost is relatively on the higher side, net interest margin result is healthy.
“TMB can be a good avenue of investment due to healthy asset quality, strong risk management system, equipped with basic retail banking infrastructure and better growth with large market to grow. However, if the verdict goes against the bank then Pending legal matters may affect TMB at the upper price band of 525, the stock is priced at 1.35x its FY22 book value (based on fully diluted post issue equity). We recommend subscribing to this issue from a long-term perspective,” said the IPO note by Investmentz.com.
Tamil Nadu Mercantile Bank (TMB) is one of the oldest private sector banks with a history of 101 years, established in 1921 as Nadar Bank. The bank primarily provides a wide range of services to micro, small and medium enterprises, agriculture and retail customers. The bank operates 509 branches, out of which 369 are in the home state Tamil Nadu, which receives more than 70% of the business and the remaining branches are spread over 15 states and four union territories.
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