Share allotment status of Tamilnad Mercantile Bank’s initial public offering (IPO) would be announced on Monday. The initial share sale of the Tuticorin-headquartered private lender got subscribed 2.86 times on the last day of subscription (September 7). The Rs 831.6-crore IPO received bids for 2,49,39,292 shares against 87,12,000 shares on offer.
Retail individual investors’ category received 6.48 times subscription, while the quota for non-institutional investors was subscribed 2.94 times. The category for qualified institutional buyers (QIBs) got 1.62 times subscription.
The initial public offer of 1.58 crore equity shares had a price range of Rs 500-525 per share. The bank proposes to utilise the proceeds from the issue for augmenting its Tier I capital base to meet future capital requirements.
It offers a wide range of banking and financial services primarily to micro, small and medium enterprises (MSMEs), agricultural and retail customers. Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets were the managers to the offer.
The equity shares are expected to list on September 15.
Here’s how to check share allotment status on BSE:
* Open https://www.bseindia.com/investors/appli_check.aspx on your browser;
* Select ‘Equity’ option and issue name – ‘Tamilnad Mercantile Bank IPO’ from the dropdown;
* Enter your application number and PAN (Permanent Account Number) details
* Check CAPTCHA and click submit to view the status.
Brokerages’ take on the IPO:
Analysts on Dalal Street are bullish on the IPO of Tamilnad Mercantile Bank.
Hem Securities said, “The bank is bringing the issue at price-to-book multiple of 1.40 times on FY22 PAT basis. Although, the bank has a strong legacy, loyal customer base and has focus on improving its servicing framework. Bank with its strong presence in Tamil Nadu and focus to increase presence in other strategic regions is consistently growing its deposit base with a focus on low-cost retail CASA. Also, with its strong asset quality, underwriting practices and risk management policies and procedures and consistent financial performance, we recommend “Subscribe” on the issue for the long term.”
,
ICICIdirect and Asit C Mehta Investment Interrmediates have given a ‘Subscribe’ for long-term rating to the public offer. ICICIdirect believes that at the upper end of the price band, the bank is valued at around 1.35 times P/BV (post issue) as on March 31, 2022, which looks reasonable. However, a change in management and pending legal proceedings in relation to shareholding remain risks.
