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Tamilnad Mercantile Bank IPO: What Signals GMP When People Pay Attention to Distribution Date

IPO of Tamilnad Mercantile Bank: After the end of the three-day subscription of the valid public issue 831.60 crore, all eyes are currently on the Tamilnad Mercantile Bank IPO allocation date, most likely September 12, 2022. In three registration days from September 5-7, 2022, Tamilnad Mercantile Bank’s IPO has been registered 2.86 times while its retail portion has been registered 6.48 times. Meanwhile, due to the lower-than-par subscription levels, the gray market turned bland with the IPO of Tamilnad Mercantile Bank. According to market observers, Tamilnad Mercantile Bank IPO GMP (grey market premium) today is 8, that is 14 down from yesterday’s high is 22 per equity share.

Bank of Tamilnad Mercantile IPO GMP today

Market observers believe that Bank of Tamilnad Mercantile IPO GMP today To be 8, that is 14 below tis .’s Friday high 22. As for why Tamilnad Mercantile Bank’s GMP IPO was unsuccessful, they said that the level of registration for the public offering was lower than usual and its valuation was also very moderate. They said that after the Red Herring Prospectus (RHP) went public, it became clear that not much was available to the public and therefore it did not attract investors the way the DreamFolks Services IPO did. do. As a result, the gray market price at the IPO of Tamilnad Mercantile Bank fell sharply compared to the surrounding 75 to 8 in just one week.

What does Tamilnad Mercantile Bank’s GMP IPO mean

Market observers say that Bank of Tamilnad Mercantile IPO GMP today is 8 that means the gray market is expecting that the public issue will be listed around 533 ( 525 + 8), equal to the issue price of 500 to 525.

However, stock market observers say the gray market should not be taken too seriously because it has nothing to do with the company’s fundamentals. They say that the gray market includes people as well as people interested in public affairs. So GMP can artificially go up before registration opens and it can drop after the public offering closes. Investors and trustees are advised to stick with the basics and look at a company’s balance sheet as it gives a concrete picture of the company’s financial health.

Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms, not those of Mint.

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