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On the first day of the offer, up until 12:08 p.m., the public offer received 6% of the total subscriptions. 5,49,388 shares have been offered in the public offering so far, compared to the bank’s 87,12,000 share offering.
Dalal Street analysts are optimistic about Tamilnad Mercantile Bank’s (TMB) first public offering (IPO), which debuted on the primary market on September 5. With a history spanning almost a century, the lender is one of India’s oldest and most prestigious private sector banks. It concentrates mostly on the RAM category (retail, agriculture, and MSME), which, as of March 2022, accounted for around 88% of total advances. By March 2022, TMB had established a sizable foothold in Tamil Nadu, with 369 branches and 949 ATMs.
There are 509 branches in all, 247 of which are semi-urban, 106 are rural, 76 are in metro areas, and 80 are in urban districts.
On the first day of the offer, up until 12:08 p.m., the public offer received 6% of the total subscriptions. 5,49,388 shares have been offered in the public offering so far, compared to the bank’s 87,12,000 share offering. For the ongoing public auction, which will end on September 7, 2022, TMB has set a price range of Rs. 500 to Rs. 525.
The grey market premium (GMP) for Tamilnad Mercantile Bank, according to IPOWatch, was about Rs 35 in the afternoon over the upper price range of Rs 525.
Asit C Mehta Investment Intermediates said, “TMB can be a good investment avenue owing to its better growth with healthy asset quality, robust risk management system, equipped with basic retail banking infrastructure, and sizeable market to grow. However, pending legal matters may impact TMB if the verdict goes against the bank.