Tamilnad Mercantile Bank TMB one of the countrys oldest private sector lenders is all set to hit Dalal Street to raise up to Rs 832 crore through an initial public offering IPO The initial share sale which comprises of fresh issuance of shares will open on September 5 and close on September 7
Dealers say Tamilnad Mercantile Bank commanded a premium of Rs 35 in the grey market on Friday
The lender has set a price band of Rs 500525 per share for the IPO in which potential investors will be able to bid for shares in multiples of 28 That makes each lot of TMB shares worth Rs 1400014700
The Tamilnad Mercantile Bank issue is priced at 14 times its book value which seems to be moderate Abhay Doshi CoFounder of Unlisted Arena a portal that tracks grey markets and deals in unlisted securities told
What brokerages say
Yes Securities has assigned a subscribe rating on the Tamilnad Mercantile Bank citing
TMBs asset quality outcomes which have reached a stage that can be regarded as stable and benign
A reasonable loan growth performance as well as outlook
Reasonable operating expense control outcomes
A healthy net interest margin outcome despite a relatively higher cost of deposits
Investmentz suggests subscribing to the issue from a longterm perspective
#ipo #bank
Source:- CNBCTV18