Tamilnad Mercantile Bank IPO: Latest GMP ahead of share allotment


The three-day initial public offer (IPO) of Tamilnad Mercantile Bank got subscribed 2.86 times on the last day of subscription that closed on Wednesday. The 831-crore public offer received bids for 2,49,39,292 shares against 87,12,000 shares on offer.

The finalization of basis of share allotment of Tamilnad Mercantile Bank IPO is expected to take place next week on Monday, September 12, 2022 and if allotted, then the credit of shares to demat account of bidders will be done on Wednesday, September 14, 2022. The registrar for this IPO is Link Intime India Private Ltd, therefore the allotment application can be checked on the registrar’s website here or on the BSE website here.

As per market observers, Tamilnad Mercantile Bank shares are available at a premium (GMP) of 23 in the grey market today, higher from 20 yesterday. The shares of the company are expected to list on stock exchanges BSE and NSE on Thursday, September 15, 2022.

Tamilnad Mercantile Bank (TMB) is one of the oldest private sector banks with a history of 101 years, having been established in 1921 as Nadar Bank. 

The Tuticorin-based bank offers a wide range of services primarily to micro, small and medium enterprises, agricultural and retail customers and the bank operates 509 branches of which 369 are in the home state of Tamil Nadu, which fetches over 70% of business and the rest of the branches are spread across 15 states and four Union territories.

The price band was fixed at 500-525 per share. The Tuticorin-based had mobilised a little over 363 crore from anchor investors ahead of its share sale. Tamilnad Mercantile Bank IPO is a fresh issue of 1.58 crore equity shares. The bank proposes to utilise the proceeds from the issue for augmenting its Tier–I capital base to meet future capital requirements.

The bank’s overall customer base is around 50.8 lakh as of March 31, 2022 growing at a CAGR of 4.4% in FY20-22) TMB had the second highest profit after tax (PAT) for FY22 among its peers while RoAs were also higher at 1.7% vs. median 0.8% for peers, as per brokerage ICICI Securities.

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