Tamilnad Mercantile Bank IPO GMP, subscription

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.

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.

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.”

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).

As per market observers, Tamilnad Mercantile Bank shares premium (GMP) have gone slightly up from yesterday to ₹15 in the grey market today, which is higher than yesterday.