The initial public offering (IPO) of Tamil Nadu Mercantile Bank was subscribed 1.53x on Tuesday, the second day of membership, after being fully subscribed in early trade. The three-day issue will conclude on Wednesday. price band is 500-525 per share. The Tuticorin-based private sector lender on Friday said it has raised slightly more 363 crore from anchor investors before its share sale.
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.
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.
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.
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.
“The consolidated revenue growth of the company in FY 2012-22 was 5% but interest/discount on advances was 4.1% as compared to FY 2012-22. It will be challenging for the bank to expand its business in Tamil Nadu as well as in new geographies. Given the current valuation of 1.4 times Price to Book, we believe the IPO price has been priced at near term positive. Thus, we have a neutral rating on the issue,” said brokerage Angel One.
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