The IPO (Initial Public Issue) of Tamil Nadu Mercantile Bank is going to hit the primary market tomorrow. The private lender, which is one of the oldest private sector banks in India, has set the price band of its public offering as: from 500 525 per equity share and it will be open for bidding from 5th September 2022 to 7th September 2022. Meanwhile, ahead of its membership opening date, there has been a rally in the gray market on the shares of Tamil Nadu Mercantile Bank. As per market observers, Tamil Nadu Mercantile Bank shares are available at a premium 35 in the gray market today.
Tamil Nadu Mercantile Bank IPO GMP today
Market observers said Tamil Nadu Mercantile Bank IPO GMP (grey market premium) today is 35, which is one rupee more than its closing price on Saturday. He said that the IPO GMP of Tamil Nadu Mercantile Bank today remains almost stable and is moving around. 35 Despite weak sentiments on Dalal Street for the last three days. He said that 7 to 8 per cent premium before subscription opening should not be taken lightly as it may pick up after the stock market changes trend.
What is meant by Tamil Nadu Mercantile Bank IPO GMP?
Today is Tamil Nadu Mercantile Bank’s IPO, say market experts 35 means gray market is expecting Tamil Nadu Mercantile Bank IPO to deliver approx Listing profit of 35 per share to investors or about 7 percent listing profit against its issue price from 500 525 per. They expected a further increase in expected listing gains reflected by the gray market once market sentiment turned negative to positive.
However, stock market observers said that one should not rely on GMP as it is purely speculative data and has no relation with the financial position of the company. He advised potential investors to look at the balance sheet of the company and only then take a decision regarding investment in the IPO.
Tamil Nadu Mercantile Bank IPO: Apply or Not?
Giving the ‘subscribe’ tag to Tamilnad Mercantile Bank IPO, YES Securities says, “We subscribe to the upcoming IPO of Tamil Nadu Mercantile Bank (TMB) for the following key reasons: (1) We find that TMB’s asset quality results A stage that can be considered stable and benign (2) We find TMB’s credit growth performance and outlook reasonable (3) We also find operating expense control results reasonable (4) While the cost of deposits is relatively More is on the higher side, the healthier the net interest margin result. It may be noted that this report is a detailed comparative analysis of 11 mid- and small-cap private sector banks, including TMB, on various parameters and data obtained from outside Red Herring Prospectus (RHP).”
Nirmal Bang has given the IPO the ‘subscribe’ tag, citing, “TMB has demonstrated a strong track record of successfully developing and managing a granular portfolio with superior asset quality metrics. TMB is the older generation private on most metrics. Banking is one of the peers.We believe that TMB can maintain the ROA at around ~4.0% level in the coming years with stable NIM at around 1.5% level and less than 1% in credit cost Could decline lower. TMB is being offered at 1.35x FY22 BV which is at a marginal discount to peer banks with similar return ratio profile. However, pending legal issues regarding the share capital of the bank will remain a hangover; We rate this issue as ‘Subscription’ considering the quality of the .
Highlighting the fundamentals of Tamil Nadu Mercantile Bank, Vineet Khandare, CEO and Founder, MyFundBazaar, said, “Being one of the oldest private sector banks with a history of 101 years, IPOs are primarily focused on Micro, Small and Medium Enterprises (MSMEs). Provides a wide range of services for enterprise, agriculture and retail customers. However, the lender has a century-old legacy and valuations at current levels are reasonable. Leaving a piece of the pie for its consumers. If investors are to invest on a long-term basis Has the risk appetite, can deliver good returns in a good time and if the expansion is well done. The only downside for the IPO is limited because of its strong performance.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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