Tamilnad Mercantile Bank IPO opens on Monday: Tamilnad Mercantile Bank (TMB) — one of the country’s oldest private sector lenders — is gearing up to launch an initial public offering (IPO) worth up to Rs 832 crore on September 5. This will be the third initial share sale to hit the Street within a span of three weeks, following a lull of almost three months. The IPOs of Syrma SGS Technology and DreamFolks Services received a robust response from investors, winning bids for 32.6 times and 56.7 times the shares on offer.
Tamilnad Mercantile Bank IPO: Subscription Dates
The TMB IPO will hit the Street on September 5, and close on September 7.
Tamilnad Mercantile Bank IPO: Price Band
Tamilnad Mercantile Bank has set a price band of Rs 500-525 per share for the IPO, which is an entirely fresh issuance of shares — which means the proceeds will go to the company.
Tamilnad Mercantile Bank IPO: Lot Size
Potential investors will be able to bid for Tamilnad Mercantile shares in multiples of 28, which makes one lot worth Rs 14,000-14,700.
Tamilnad Mercantile Bank IPO: Financials
Tamilnad Mercantile Bank’s net profit has grown at a CAGR of almost 42 per cent between the years ended March 2020 and March 2022, according to Axis Securities. Its deposits increased at a CAGR of 10.5 per cent compared with a peer median of 7.9 per cent during this period, and advances rose 9.9 per cent, the brokerage highlighted in a note.
Tamilnad Mercantile Bank IPO: GMP Today
As per market observers, Tamilnad Mercantile Bank shares are available at at premium (GMP) of Rs 31 in the grey market today.
Tamilnad Mercantile Bank IPO: About the Company
It is one of the oldest private sector banks with a history of 101 years, having been established in 1921 as Nadar Bank. The bank offers a wide range of services primarily to micro, small and medium enterprises, agricultural and retail customers. The bank operates 509 branches of which 369 are in the home state of Tamil Nadu, which fetches over 70 per cent of business and the rest of the branches are spread across 15 states and four Union territories.
Tamilnad Mercantile Bank IPO: Listing on BSE, NSE
The shares of the company are expected to list on stock exchanges BSE and NSE on Thursday, September 15, 2022. Axis Capital, Motilal Oswal Investment Advisors, and SBI Capital Markets are the book-running lead managers and Link Intime India Private Ltd is the registrar for the public issue.
Tamilnad Mercantile Bank IPO: Valuation
At the upper end of the price range, the Tamilnad Mercantile IPO is valued at 1.35 times its post-IPO book value, which is decent given its strong fundamentals, Ajcon Global said.
Tamilnad Mercantile Bank IPO: Should you bid for the IPO?
Ajcon Global recommends subscribing to the issue due to the lender’s strong legacy, loyal customer base, focus on improving servicing framework, a strong presence in Tamil Nadu, and consistently growing deposit base.