Tamilnad Mercantile Bank makes a lacklustre debut, lists almost 3% decrease on NSE

Tamilnad Mercantile Bank IPO Share Debut: Shares of personal sector lender Tamilnad Mercantile Bank made a lacklustre debut on Thursday, getting listed at a reduction of almost 3 per cent from their challenge value on the inventory exchanges.

The inventory bought listed at Rs 495.00 apiece on the National Stock Exchange (NSE), thereby registering a fall of two.94 per cent from its provide value of Rs 510.00. However, on the BSE, it opened at Rs 510.00, unchanged from the difficulty value.

In the primary jiffy of itemizing, the Tamilnad Mercantile Bank inventory moved in a slender vary from its itemizing stage. During the primary quarter-hour of commerce, the shares hit a excessive 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 buying and selling at Rs 509.90 on the BSE, down 0.02 per cent from the difficulty value whereas on NSE it was at Rs 509.00, down 0.20 per cent. The market capitalisation stood at Rs 8,074.34 crore, knowledge from the BSE confirmed.

Over 10.77 lakh shares of Tamilnad Mercantile Bank had been traded up to now on NSE whereas round 96,000 shares have exchanged palms on the BSE, knowledge from the respective inventory alternate confirmed.

Tamilnad Mercantile Bank is likely one of the oldest non-public sector banks within the nation with a historical past of just about 100 years. It gives a variety of banking and monetary providers primarily to micro, small and medium enterprises (MSME), agricultural and retail clients.

As of March 2022, the non-public sector lender has 509 branches, of which, 106 branches are in rural, 247 in semi-urban, 80 in city and 76 in metropolitan centres. It had a buyer base of round 5.08 million as of March 2022. Of which, almost 80 per cent comprised clients who had been related to the financial institution for greater than 5 years.

The IPO was out there for public subscription from September 5-7, 2022 and bought subscribed 2.86 instances by the ultimate day.

Reacting to the itemizing, Santosh Meena, Head of Research at Swastika Investmart mentioned, “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.”