Tamil Nadu Mercantile Bank’s 832 crore IPO to open today
Thoothukudi-based Tamil Nadu Mercantile Bank is scheduled to launch its Initial Public Offering (IPO) today from September 5 to September 7.
The private-sector bank will raise 832 crore through a fresh issue of 1.58 crore shares. The lender has fixed a price band of 500–525 per share.
The proceeds from the IPO will be used to augment the Tier-I capital base to meet future capital requirements.
Views of Anil Singhvi on the Tamilnad Mercantile Bank IPO: The initial public offering (IPO) of Tamil Nadu Mercantile Bank will open for subscription on Monday. The three-day IPO of Rs 831.6 crore will end on September 7. The IPO is a fresh issue of 1.58 crore equity shares with a price band of Rs 500–525 per share. 75 per cent of the issue is reserved for qualified institutional investors, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
Axis Capital Limited, Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited are the Book Running Lead Managers of the Public Issue. Equity shares are proposed to be listed on the BSE and NSE.
Ahead of the Tamil Nadu Mercantile Bank IPO, Zee Business Managing Editor Anil Singhvi talks about the pros and cons of the issue and recommends what investors should do.
Speaking positively about the Tuticorin-based bank, Singhvi said that the bank has strong asset quality and also strong financials and net interest margin (NIM).
🌟Tamilnad Mercantile Bank IPO :आज से तमिलनाड मर्केंटाइल बैंक का IPO, प्राइस बैंड: ₹500-525/शेयर#TamilnadMercantileBank में क्या पॉजिटिव, क्या निगेटिव ⁉️
🔹इश्यू को सब्सक्राइब करें या छोड़ दें?
जानिए #AnilSinghvi की राय..
— Zee Business (@ZeeBusiness) September 5, 2022
However, Market Guru advised avoiding this issue. He said the bank is involved in a lot of litigation and is always under the scanner of the regulator.
“The IPO is not very attractive in terms of valuation. “Avoid this issue as there are many better options available with the listed banks,” said the expert.
Earlier, ahead of the opening of the issue, the private sector lender on Friday raised over Rs 363 crore from anchor investors, days ahead of its initial public offering (IPO). Societe Generale, Nomura Singapore, Bajaj Allianz Life Insurance Company, Max Life Insurance Company, Kotak Mahindra Life Insurance Company, and Moneywise Financial Services are among the anchor investors.
According to a circular uploaded on the BSE website, the company has decided to allot 71.28 lakh equity shares of Rs 510 each to anchor investors, taking the total transaction size to Rs 363.53 crore.
One of the oldest private sector banks in the country with a history of nearly 100 years, Tamil Nadu Mercantile Bank provides a wide range of banking and financial services primarily to micro, small and medium enterprises (MSMEs), agriculture and retail customers. Is.
According to the company, the bank has 509 branches, out of which 106 are in rural areas, 247 in semi-urban areas, 80 in urban areas and 76 in metropolitan centres as of March 2022. Its subscriber base was around 5.08 million. March 2022. which included nearly 80% of customers who had been with the bank for more than five years.