Tamilnad Mercantile Bank IPO Share Debut, Tamilnad Mercantile Bank share price: Shares of private sector lender Tamilnad Mercantile Bank made a lacklustre debut on Thursday, getting listed at a discount of nearly 3 per cent from their issue price on the stock exchanges.
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The stock got listed at Rs 495.00 apiece on the National Stock Exchange (NSE), thereby registering a fall of 2.94 per cent from its offer price of Rs 510.00. However, on the BSE, it opened at Rs 510.00, unchanged from the issue price.
In the first few minutes of listing, the Tamilnad Mercantile Bank stock moved in a narrow range from its listing level. During the first 15 minutes of trade, the shares hit a high of Rs 519.00 on the BSE and Rs 510.00 on the NSE and a low of Rs 487.00 on BSE and Rs 486.00 on NSE.
At 10:15 am, the scrip was trading at Rs 509.90 on the BSE, down 0.02 per cent from the issue price while on NSE it was at Rs 509.00, down 0.20 per cent. The market capitalisation stood at Rs 8,074.34 crore, data from the BSE showed.
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Over 10.77 lakh shares of Tamilnad Mercantile Bank were traded so far on NSE while around 96,000 shares have exchanged hands on the BSE, data from the respective stock exchange showed.
Tamilnad Mercantile Bank is one of the oldest private sector banks in the country with a history of almost 100 years. It offers a wide range of banking and financial services primarily to micro, small and medium enterprises (MSME), agricultural and retail customers.
As of March 2022, the private sector lender has 509 branches, of which, 106 branches are in rural, 247 in semi-urban, 80 in urban and 76 in metropolitan centres. It had a customer base of around 5.08 million as of March 2022. Of which, nearly 80 per cent comprised customers who were associated with the bank for more than five years.
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The IPO was available for public subscription from September 5-7, 2022 and got subscribed 2.86 times by the final day.
Reacting to the listing, Santosh Meena, Head of Research at Swastika Investmart said, “The precarious legal challenges, the lack of complete clarity on the management’s long-term performance, and less than stellar subscription numbers are some of the reasons for its negative listing. Those who applied for listing gains can maintain a stop loss of Rs 470. Long-term investors should wait for some quarters to let the dust settle, and in the meanwhile, we suggest investors go for the existing listed banks where the management’s track record and performance during multiple credit cycles are visible. In short, large-sized banks and a few mid-sized banks are the best to ride on the upcoming credit and economic growth cycle.”
