Jobaaj Stories
The IPO listing gains streak was broken today as the shares of Tamilnad Mercantile Bank (TMB) made a muted debut on the bourses, ending the IPO winning streak which began from Syrma SGS & Dreamfolks Services.
We at Jobaaj reported about the IPO of TMB wherein the shares of the bank were priced at a price band of Rs 500-525 per share. The IPO received a fairly good response as the total IPO was subscribed 2.86x times. The QIB portion was subscribed 1.62x times, HNI 2.94x times & retail 6.48x times.
Moreover, the bank raised Rs 363 crores from a consortium of anchor investors, which mainly comprised insurance companies. Bajaj Allianz Life Insurance, Nomura Singapore, Max Life Insurance, Societe Generale, Kotak Mahindra Life Insurance, Cholamandalam MS General Insurance, Authum Investment, and Alchemie Ventures Fund are some of the anchor investors.
Before listing today, the stock was available in the grey market at a premium of Rs 15 per share or 2.8%. Experts had predicted a muted debut for today as the stock listed at Rs 495 per share, a discount of 5.7%.
The stock touched a low of Rs 481 per share today while reaching a high of Rs 515 per share, Rs 10 below the IPO price. At a close of Rs 509.65, the shareholders are in the red, facing a listing day loss of Rs 15.35 per share or 2.9%.
Brokerages find the valuation of the stock to be reasonable, but the changes in management and the pending litigations serve as a risk for investors. Despite the issues, most brokerages have a "Subscribe: Long Term" eating.
Article by Aman Agarwal.
This news piece is brought to you in association with Jobaaj.com
