Tamilnad Mercantile Bank IPO opens on 5th Sept: GMP, Price; Should you Subscribe?

Tamilnad Mercantile Bank IPO has opened on Monday (5th Sept, 2022) with price band at Rs. 500-525 for each share for a total of Rs. 832-crore initial public offer. The Bank has also announced that 7th September, 2022 is the last date for subscription. Stay tuned to this article on Money Niyantran till the end to get all details about Tamilnad Mercantile Bank IPO and find out whether you should invest or not.

The IPO (Initial Public Offering) of Tamilnad Mercantile Bank (with headquarters in Tuticorin), has opened today. The SAT (Securities Appellate Tribunal) dismissed the Tamilnad Mercantile Bank’s investor shareholders’ appeal to commence the Rs. 832 crore share sale on 2nd Sept (Friday). As Taminad Mercantile Bank is owned solely by shareholders, it doesn’t fall under the SEBI guideline of 25% minimum public shareholding.


Tamilnad Mercantile Bank: Shareholders

Here’s a list of the six shareholders of Tamilnad Mercantile Bank:

  • Starship Equity Holdings (with 4.72% shares)
  • East River Holdings (shareholder of 3.72%)
  • Robert & Ardis James Company (possessing shares of 4.95%)
  • Subcontinental Equities (with 4.64% shares)
  • FI Invest Mauritius (1.48% shareholder)
  • Swiss Re Investors Mauritius (holding shares of 1.90%)

All of the above-mentioned foreign shareholders of Tamilnad Mercantile Bank will have to retain their specific holdings for at least six months after the Initial Public Offering.

Tamilnad Mercantile Bank IPO: Should You Invest?

Tamilnad Mercantile Bank IPO

Tamilnad Mercantile Bank is among the oldest private sector banks, which was established as Nadar Bank in 1921, 101 years ago. The bank offers a variety o services to small, micro and medium enterprises, retail and agricultural customers. It has 509 branches, out of which 369 are present in Tamil Nadu, its home state. 70 per cent of its revenue comes from the Tamil Nadu branches and the remaining branches are in different parts of the country.

Tamilnad Mercantile Bank IPO can be a good investment option, thanks to its healthy asset quality, advanced risk management system. Experts see great prospects of growth for the bank in future and recommend subscribing for a long-term to expect impressive returns.

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