IPO Of Tamilnad Mercantile Bank Will Open Tomorrow
IPO of Tamilnad Mercantile Bank will open tomorrow, know what is the opinion of experts.
The IPO of 100-year-old Tamilnad Mercantile Bank will open tomorrow i.e. on 5th September 2022.
Tamilnad Mercantile Bank has raised more than Rs 363 crore from anchor investors before the opening of the 832 crore IPO.
According to a circular uploaded on the BSE website, it has issued 71.28 lakh equity shares at a price of Rs 510 per share to anchor investors.
Societe Generale, Nomura Singapore, Bajaj Allianz Life Insurance Company, Max Life Insurance Company, Kotak Mahindra Life Insurance Company, and Moneywise Financial Services Company are among the anchor investors.
What are the indications of gray market premium?
On the other hand, talking about the gray market, there is a steady decline in the GMP i.e. gray market premium and its GMP has slipped from Rs 40 to Rs 25.
Even after the decline in the gray market, its shares are still at a premium price. According to experts, the shares of Tamilnad Mercantile Bank are trading at a premium of Rs 25.
This means that the share price of the bank can be listed at around Rs 25 i.e. Rs 550 from the upper price of the bank. Two days ago it was at a premium of Rs 36.
According to experts, it is not right to invest only on the basis of signals from the gray market.
But instead, the decision should be taken on the basis of the fundamentals and financial performance of the company.
According to experts, the company’s shares are expected to be listed on the stock exchanges BSE and NSE on Thursday, September 15, 2022.
The company’s IPO will open from September 5 to September 7.
Tamilnad Mercantile Bank IPO will open tomorrow i.e. from September 5 to September 7. However, it opened for anchor investors on 2 September.
Investors will be able to invest in this in the price band of Rs 500-525. Under this issue of Rs 832 crore, 1.58 crore new shares will be issued.
The money raised will be used to raise Tier-1 capital to meet future capital requirements.
Experts gave this advice regarding investment.
Yes, Securities has given subscribe rating to the issue of Tamil Mercantile Bank. According to analysts, its asset quality is now at a stable level and its loan growth is also good.
Its Net Interest Margin is healthy despite the high cost of deposits. Apart from all this, due to the strong risk management system of the bank, experts are advising it to invest in the long term.
Talking about the risk related to investment in this, the legal issues that are pending, and if a decision comes against the bank, then the business of the bank may be affected.
Tamilnad Mercantile Bank is about 100 years old bank and was established in 1921.
This bank provides banking and financial services to Micro, Small, and Medium Enterprises (MSMEs), farmers, and retail customers.
As of 31 March 2022, it has 509 branches and 50.8 customers as per the available data.
Apart from 369 branches in Tamil Nadu, this bank is also present in 15 other states and 4 union territories of the country.
