Tamil Nadu Mercantile Bank shares have a sluggish start, list at a discount

“Uncertain legal challenges, lack of absolute clarity on management’s long-term performance, and less than stellar membership numbers are some of the reasons for its negative listing. Those who applied for listing gain can maintain a stop loss of Rs. 470. Long-term investors should wait for a few quarters for the dust to settle, and in the meantime, we suggest investors to go for existing listed banks, which have a proven track record of management and performance across multiple credit cycles. said Santosh Meena, Head of Research, Swastika Investmart Ltd.

Initial Public Offering (IPOTamil Nadu Mercantile Bank was subscribed 2.86 times on the last day of subscription. Bids were received for 2,49,39,292 shares for the 831.6 crore public offering, while there were 87,12,000 shares on offer.

The retail individual investors category was subscribed 6.48 times, while the quota for non-institutional investors was subscribed 2.94 times. The category of Qualified Institutional Buyers (QIBs) got 1.62 times the subscription for the issue.

The price band was fixed at 500-525 per share. Tuticorin-based had mobilized a bit more 363 crore from anchor investors before its share sale. The IPO of Tamil Nadu Mercantile Bank was the latest issue of 1.58 crore equity shares. The bank had said that it proposes to use 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, founded in 1921 as Nadar Bank. The Tuticorin based bank provides a wide range of services primarily to micro, small and medium enterprises, agriculture and retail customers and the bank operates 509 branches, of which 369 are in the home state of Tamil Nadu, accounting for over 70% Receives business and the remaining branches are spread over 15 states and four union territories.

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