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As Tamilnad Mercantile Bank gears up for listing, here's what grey market suggests

As Tamilnad Mercantile Bank gears up for listing, here's what grey market suggests

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By Sandeep Singh  Sept 15, 2022 7:52:04 AM IST (Updated)

Tamilnad Mercantile Bank IPO listing price: According to dealers, Tamilnad Mercantile Bank commanded a premium of Rs 5-35 in the grey market in the past few days.

Tamilnad Mercantile Bank is all set to make a secondary market debut on Thursday, September 15. The IPO of TMB — one of the country's oldest private sector banks — worth Rs 832 crore concluded last week with an overall subscription of almost three times with modest demand across investor categories.

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According to dealers, Tamilnad Mercantile commanded a premium of Rs 5-35 since the IPO, ahead of the listing on BSE and NSE. Grey market is an unofficial market for unlisted securities.
"We may see an unexciting listing going ahead and the issue may list at par to a marginal premium only," Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com.
DateGrey market premium (in rupees)
Sept 1515
Sept 1415
Sept 1315
Sept 1215
Sept 95
Sept 85
Sept 715
Sept 615
Sept 535
Sept 235
(Source: IPO Watch)
"Amid recent decent listings in the primary market, Tamilnad Mercantile Bank got a slow response especially from qualified institutional buyer and high net worth individual segments. Some pending legal issues and pricing may have made investors watchful," he said.
Tamilnad Mercantile Bank's IPO — which was open for subscription from September 5 to September 7 — bagged bids for a total of 2.5 crore shares against the 87.1 lakh shares on offer, marking an overall subscription of 2.9 times, according to exchange data.
Shares under the IPO were available for bidding in a price band of Rs 500-525 in multiples of 28. That made one lot of Tamilnad Mercantile Bank shares worth Rs 14,000-14,700 for bidding.
Tamilnad Mercantile Bank shares will begin their journey on the bourses on September 15.
Ahead of the IPO, Tamilnad Mercantile Bank raised Rs 363.5 crore from anchor investors including Nomura, Societe Generale, Max Life Insurance, Kotak Mahindra Life Insurance and Bajaj Allianz Life, by allocating 71.3 lakh shares at Rs 510 apiece.
Tamilnad Mercantile Bank's is the third initial share sale to hit Dalal Street within a span of three weeks, following a lull of almost three months.
Last month, the IPOs of Syrma SGS Technology and DreamFolks Services concluded with a strong response from investors. Syrma shares made a strong debut in the secondary market, finishing the listing day at a premium of about 42 percent over the issue price.
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Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!