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Tamilnad Mercantile Bank IPO Day 2: Issue oversubscribed, retail investors book 3 times the reserved portion

Tamilnad Mercantile Bank IPO Day 2: Issue oversubscribed, retail investors book 3 times the reserved portion

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By CNBCTV18.com Sept 6, 2022 10:41 PM IST (Updated)

Tamilnad Mercantile Bank IPO Day 2: The lender's issue was oversubscribed by Tuesday, the second day of bidding. Investors across categories bid for more than 1,20,00,000 shares against 87,12,000 on offer, according to an update on the BSE website.

The initial public offer of Tamilnad Mercantile Bank got subscribed 1.53 times on Tuesday, day two of the subscription. The Rs 831.6-crore public offer received bids for 1,33,68,460 shares, against 87,12,000 shares on offer, according to an update available with the NSE.

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The retail Individual Investors (RIIs) category received 3.61 times subscription. The portion for non-institutional investors got subscribed 1.27 times and the Qualified Institutional Buyers (QIBs) quota was subscribed 98 percent. The initial public offer of Tamilnad Mercantile Bank got fully subscribed in early trade on Tuesday.
The initial public offer (IPO) of 1.58 crore equity shares has a price range of Rs 500-525 a share. The IPO of Tamilnad Mercantile Bank received an 83 percent subscription on the first day on Monday.
Tamilnad Mercantile Bank IPO of 1.58 crore equity shares has a price range of Rs 500-525 a share. Investors can bid in multiples of 28 for the shares of TMB — one of the country's oldest private sector lenders.
The Tuticorin-based bank has said it would utilise the proceeds from the share sale to augment its TierI capital base to meet future capital requirements. Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets are the managers of the offer.
Tamilnad Mercantile Bank's is the third initial share sale after Syrma SGS Technology and DreamFolks Services to hit Dalal Street within a span of three weeks, following a lull of almost three months.
Several brokerages including Yes Secuities have recommended bidding for Tamilnad Mercantile Bank IPO.
Yes Securities gave the IPO a 'subscribe' rating on the back of the lender's asset quality outcomes, which have reached a stage that can be regarded as stable and benign. It is also positive on TMB's reasonable loan growth performance as well as operating expense control outcomes.
Investmentz also suggests subscribing to the issue for the long term as it believes 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," the brokerage said.
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