Tamilnad Mercantile Bank IPO Subscription Last Day: The maiden public issue of Tamilnad Mercantile Bank continued to see good participation on the second day of subscription. The offer received bids for 1.33 crore shares against IPO size of 87.12 lakh shares, getting subscribed 1.53 times. The Tamilnad Mercantile Bank IPO comprises a fresh issue of up to 15,840,000 equity shares. The net proceeds from the issue will be utilised for augmenting its Tier–I capital base to meet future capital requirements.
Tamilnad Mercantile Bank IPO Subscription Status
Retail investors remained ahead in terms of subscription, booking their quota 3.61 times, while non-institutional investors bought 1.27 times of their reserved portion. Good response was also seen from qualified institutional investors with their portion getting subscribed 98 per cent.
Tamilnad Mercantile Bank IPO Valuation
Reliance Securities in its report noted, “The IPO is valued at 1.6x FY22 Book. TMB is one of the oldest banks with 100+ years of legacy. TMB focussed on diversifying product portfolio to access more client base. It continues to expand relationship banking facilities to increase network.”
Tamilnad Mercantile Bank IPO Share Allotment & Listing
The share allotment is likely to take place on Monday, September 12, 2022, and the shares are expected to be listed on Thursday, September 15, 2022, according to the timeline given in the red herring prospectus (RHP).
Tamilnad Mercantile Bank IPO: GMP Today
As per market observers, Tamilnad Mercantile Bank shares premium (GMP) have gone slightly up from yesterday to Rs 15 in the grey market today, which is higher than yeasterday.
Tamilnad Mercantile Bank IPO Should you Invest?
IIFL Research in its IPO note said, “At the upper price band of ₹525, Tamilnad Mercantile Bank Limited is demanding a P/E multiple of ~9.1X based on FY22 earnings, while the industry average is 11.85x. With a loyal customer base and focus on improving servicing framework, strong presence in Tamil Nadu with focus to increase presence in other strategic regions, consistent increase in profits and plans of further investment in technology, we a recommend subscribe on the issue with a long-term perspective.”
Reliance Securities, said: “It intends to focus more on fee-based products such as issuing debit cards, credit cards, insurance, online bill payment, DP services, etc. In view of its improving assets quality, lower NPAs, focus on strategic expansion, growing deposit base with a focus on low-cost retail CASA, strong financial track record and valuation comfort, we recommend a ‘SUBSCRIBE’ to the issue.”
Tamilnad Mercantile Bank IPO: About the Company
Tamilnad Mercantile Bank is one of the oldest private sector banks in the country with a history of almost 100 years. It offers a wide range of banking and financial services primarily to micro, small and medium enterprises (MSME), agricultural and retail customers.
As of March 2022, the private sector lender has 509 branches, of which, 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. It had a customer base of around 5.08 million as of March 2022. Of which, nearly 80 per cent comprised customers who were associated with the bank for more than five years.
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