Tamilnad Mercantile Bank IPO: What GMP signals as all eyes set on allotment date

Tamilnad Mercantile Bank IPO: After closure of three days subscription of the public issue worth ₹ 831. 60 crore, all eyes are now set on Tamilnad Mercantile Bank IPO allotment date, which is most likely on 12th September 2022. In three days subscription from 5th to 7th September 2022, Tamilnad Mercantile Bank IPO got subscribed 2.

86 times whereas its retail portion was subscribed 6. 48 times. Meanwhile, due to below par subscription levels, grey market has gone dovish on Tamilnad Mercantile Bank IPO.

According to market observers, Tamilnad Mercantile Bank IPO GMP (grey market premium) today is ₹ 8, which is ₹ 14 down from its yesterday’s high of ₹ 22 per equity share. Tamilnad Mercantile Bank IPO GMP today market observers said that Tamilnad Mercantile Bank IPO GMP today is ₹ 8, which is ₹ 14 lower from tis Friday’s high of ₹ 22. On why Tamilnad Mercantile Bank IPO GMP has been nosediving, they said that subscription levels of the public issue was below par and its valuations too were highly moderate.

They said that after the Red Herring Prospectus (RHP) of the public issue became public, it became clear that there was not much available for the public and hence it failed to attract investors the way DreamFolks Services IPO did. Hence, Tamilnad Mercantile Bank IPO grey market price tumbled from around ₹ 75 to ₹ 8 in mere one week. TRENDING STORIES See All Premium Three 5-star rated mutual funds turn SIP of ₹10,000 to .

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. . What this Tamilnad Mercantile Bank IPO GMP mean Market observers said that Tamilnad Mercantile Bank IPO GMP today is ₹ 8 that means grey market is expecting that the public issue will list at around ₹ 533 ( ₹ 525 + ₹ 8), which is at par with the issue price of ₹ 500 to ₹ 525.

However, stock market observers said that one should not take grey market that much seriously as it has nothing to do with the company’s fundamentals. They said that grey market includes those people as well who have their interest vested in the public issue. So, the GMP can be artificially high ahead of subscription opening and it may come down after the closure of the public offer.

The advised investors and allottees to stick with the basics and go through the balance sheet of the company as it gives concrete picture of the company’s financial status. MINT PREMIUM See All Premium Why CCI matters for protecting customers from digital p . .

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