The demanded valuation also looks reasonable. However, the bank is involved in several legal proceedings including those filed by some of the existing investors regarding the offer for sale. The verdict is pending. This may be a major deterrent for risk-averse investors. Given these factors, the issue looks more suitable for investors with a higher risk appetite.
ET Intelligence Group: Tamilnad Mercantile Bank (TMB) plans to raise upto Rs 832 crore from the primary market through an issue of fresh equity to improve its capital base. The bank’s activities are concentrated in Tamil Nadu, which contributes over 75% to its business. It has performed well on financial parameters with lower non-performing assets (NPAs) compared with peers.
The demanded valuation also looks reasonable. However, the bank is
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