LIVE: Tamilnad Mercantile Bank IPO listing: Shares drop after flat debut; what should investors do?

Tamilnad Mercantile Bank share price drops 5%

After opening flat at the issue price, shares of Tamilnad Mercantile Bank dropped further five per cent in BSE intraday trade to Rs 484.50 a share. The counter was trading near its issue price at Rs 509 per share around 2.10 pm on Thursday  

Tamilnad Mercantile Bank share price 

After opening flat, shares of Tamilnad Mercantile Bank dropped to Rs 484.50 on the lower side, while jumped marginally to Rs 515 on the BSE. The share was listed at the IPO price of Rs 510 on the BSE 

Tamilnad Mercantile Bank listing: What should investors do? 

Tamilnad Mercantile Bank has debuted at Rs. 495 i.e. ~6% below its issue price.  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.

Santosh Meena, Head of Research, Swastika Investmart Ltd. on Tamilnad Mercantile Bank IPO

Tamilnad Mercantile Bank share listing price

Shares of Tamilnad Mercantile Bank made a flat debut on the bourses on Thursday. The counter opened at Rs 510 er share on the BSE, no change against the issue price. 

Tamilnad Mercantile Bank share price 

Shares of Tamilnad Mercantile Bank were trading falt in the pre-open with gain of one per cent at the lower price band to Rs 515 per share on the BSE 

Tamilnad Mercantile Bank Listing Expectations, Price: Anil Singhvi  

Zee Business Managing Editor Anil Singhvi says Tamilnad Mercantile Bank IPO is expected to list with slight premium. He suggested keeping Strict stoploss of issue price of Rs 525 
 

Tamilnad Mercantile Bank IPO Review: Anil Singhvi

Earlier, Zee Business Managing Editor Anil Singhvi listed pros and cons of this issue and recommended what should investors do?  Speaking of positives about the Tuticorin-based bank, Singhvi said the bank has strong asset quality and it also robust financials and net interest margin (NIM). However, the market guru recommended avoiding the issue. He said the bank is engaged in too many litigations and is always under regulator’s scrutiny.  “Valuation-wise the IPO is not very attractive. Avoid this issue as there are many better options available among listed banks,” the expert added.  

Tamilnad Mercantile Bank IPO listing deatails

The portion reserved for retail investors was subscribed 6.48 times. Non-Institutional Investors and Qualified Institutional Buyers (QIBs) subscribed the issue 2.97 times and 1.62 times respectively.