Tamil Nadu Mercantile Bank’s three-day initial public offering (IPO) will open for public subscription next week on Monday, September 5, 2022 and will end on Wednesday, September 7. Tuticorin-based private sector lender has fixed the price band 500-525 per share for this 832 crore initial share offer.
As per market observers, Tamil Nadu Mercantile Bank shares are available at Premium (GMP) 31 in the gray market today. The company’s shares are expected to be listed on the stock exchanges BSE and NSE on Thursday, 15th September, 2022. Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers and Link Intime India Private Limited is the registrar. for a public issue.
Tamil Nadu Mercantile Bank IPO There will be a fresh issue of 1.58 crore equity shares and the bank proposes to use the proceeds to raise its core capital, which will touch 25% after the current 22% and also 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 provides a wide range of services primarily 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.
“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 price is 1.35 times the book value of FY22 (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.
Bank reported net income of 8,212 crore in FY 2022 on an income of 4,656.4 crore as compared to 603 crore and 4,253 crore in FY 2011 respectively.
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