Tamilnad Mercantile Bank IPO: TMB's initial share sale was fully subscribed on Tuesday, the second day of the bidding process. Tamilnad Mercantile Bank's is the third initial share sale to hit Dalal Street within a span of three weeks.
Tamilnad Mercantile Bank's initial public offering (IPO), to raise up to Rs 832 crore, concluded with an overall subscription of 2.9 times the shares on offer on Wednesday, the third day of the bidding process. Under the IPO of TMB — one of the country's oldest private sector banks, shares were available for bidding in a price band of Rs 500-525 in multiples of 28.
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By the end of the day, the Tamilnad Mercantile IPO received bids for a total of 2.5 crore shares against the 87.1 lakh shares on offer, according to exchange data.
One lot of Tamilnad Mercantile Bank shares is worth Rs 14,000-14,700.
On Friday, Tamilnad Mercantile Bank said it had 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.
A number of brokerages recommend subscribing to the Tamilnad Mercantile Bank IPO:
Yes Securities has assigned a 'subscribe' rating on the IPO, citing 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.
"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.
First Published: IST