InvestorQ : What are the key terms of the Tamilnad Mercantile Bank IPO offer and is the issue worth investing in?
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What are the key terms of the Tamilnad Mercantile Bank IPO offer and is the issue worth investing in?

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Niti Shenoi answered.
2 months ago
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Here are some of the key highlights of the IPO that investors must know before investing.

1) The IPO of Tamilnad Mercantile Bank opens for subscription on 05th September and closes on 07th September, both days inclusive.

2) Basis of allotment will be finalized on 12th September, refunds will be initiated on 13th September, demat credits will be done on 14th September and the listing of the stock on NSE and BSE will happen on 15th September.

3) TMB IPO has allocated 75% to QIBs (qualified institutional buyers), 15% to NII/HNI category and 10% to the retail investors. The minimum investment lot in the IPO would comprise of 28 shares.

4) Retail investors can apply for minimum 1 lot and maximum 13 lots (364 shares) worth Rs191,100. In HNI/NII category, small HNIs can invest between 14 lots and 68 lots while the large HNIs can invest above 69 lots.

5) The TMB IPO is entirely a fresh issue of 158.40 lakh shares and the price band has been fixed in the range of Rs500 to Rs525 per share. At the upper end of the price band, the issue size works out to Rs831.60 crore.

6) The bank has no promoter group, being a professionally managed group. At the upper band, it’s the indicative market cap of TMB would be Rs8,313 crore. The anchor allocation will happen on 02nd September.

7) The issue will be lead managed by Axis Capital, Motilal Oswal Investment Advisors and SBI Capital Markets. Link In Time India Private Ltd will be the registrars to the issue.

Having declared net profits of Rs902 crore in FY22, the stock is valued on historic earnings at about 9.22 times earnings. The PE ratio is reasonable and should lave room for investors to make money on the table.

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