About the company
Tamilnad mercantile bank is one of India’s oldest private sector banks and was incorporated in 1921. It offers financial services to retail customers, MSME enterprises, and more. It currently has 509 full branches throughout India and a total customer base of 5.08 million with 1151 ATM machines. It was rated as the fastest growing private sector bank continuously for the five years from 2010 to 2015. It was also India’s first private sector bank to introduce computerization as early as the year 1983.
Strengths of Tamilnad Mercantile Bank
– It has a proven track record for financial performance.
– It has a strong presence in Tamil Nadu and is focusing on expanding its presence in strategic regions.
– It has a history of almost 100 years which means longevity is no issue.
– It has a loyal customer base in various segments like retail, MSMEs, agriculture, etc.
– It has a consistently growing customer deposit.
Now, let’s talk about the IPO details
| TMB IPO Date | September 5, 2022- September 7, 2022 |
| TMB IPO Face Value | Rs. 10 per share |
| TMB IPO Price | Rs. 525 per share |
| TMB IPO Lot Size | 28 shares |
| TMB IPO Size | Rs. 792- 831.60 crores |
| Issue Type | Book Building Issue |
| Listed at | NSE, BSE |
| Listing Date | 15th Sept 2022 |
Subscription Status
TMB, one of the oldest private sector banks, worth Rs. 832 crores concluded last week with an overall subscription of 2.86 times with moderate demands through various investor categories. The public issue subscribed 6.48 times in the retail category, 1.62 times in QIB, and 2.94 times in the NII category by September 7, 2022.
| Investor Category | Subscription (times) |
| Qualified Institutions | 1.62 |
| Non-Institutional Buyers | 2.94 |
| bNII (Bids above ₹10L) | 3.10 |
| sNII (bids below ₹10L) | 2.63 |
| Retail Investors | 6.48 |
| Employees | [.] |
| Others | [.] |
| Total | 2.86 |
Grey Market Premium (GMP)
Tamilnad Mercantile Bank had a premium of Rs. 5 in the grey market on Friday which is a steep fall from Rs. 35 during the IPO days when it was ahead of the listing on BSE and NSE. The Grey market is an unofficial market for unlisted securities.
The timeline has been like the following:
| Date | Grey Market Premium (in ₹) |
| Sept 9 | 5 |
| Sept 8 | 5 |
| Sept 7 | 15 |
| Sept 6 | 15 |
| Sept 5 | 35 |
| Sept 2 | 35 |
The Tamilnad mercantile bank IPO’s allotment status will be available on Sept 12, 2022. The allotted shares will be credited to the allottees Demat account by Sept 14, 2022. The listing date of Tamilnad Mercantile Bank is September 15, 2022.
What can the allottees expect from TMB IPO?
This issue is fairly priced and holds good future prospects. The steady growth track record and the strong fundamentals of the bank balance well considering the moderately priced issue from a medium to long-term perspective investment.
The Red Herring Prospectus (RHP) of the public issue has become public and thus, has revealed that there is not much in the IPO for the public to grasp and hence why the investors have not been attracted the way they were with DreamFolks Services IPO. This is one of the reasons why the GMP (Grey Market Premium) has been falling so rapidly from its Rs. 75 high to a mere Rs. 5-8 this week.
Hope for the long-term
But nevertheless, the grey market premium is not the true reflection of a company’s true potential and fundamental financials, which TMB has proven to be strong and worth investing in for the medium to long-term.
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