tmb ipo grey market: TMB’s grey market premium fizzles out; will a dent in Harsha Engineering follow? – Blue Barrows

Even as the secondary market is gaining momentum, the primary market has lost some ground recently, if one goes by the signals from the grey market.

Listing-bound Tamilnad Mercantile Bank (TBM) is commanding a mild premium of Rs 5-10 per share in the grey market over its issue price of Rs 525 as against Rs 30 last week. The latest figure suggests at par debut on Dalal Street.

At the same time, IPO-bound Harsh Engineers International is exchanging hands at a premium of Rs 210 over its price band of Rs 314-330. The premium for this company, too, eased down from the peak of Rs 230-240.

Market experts believe that Tamilnad Mercantile Bank is likely to be listed around its issue price due to muted response and mixed analyst views for the lender.

The private lender, which raised Rs 831.60 crore from the primary markets between September 5 and 7, is likely to debut on the bourses on Thursday, September 15.

Meanwhile, Harsha Engineers, whose IPO will kick off for subscription from Wednesday, September 14 is looking to mop up Rs 755 crore via primary offering.

The shares of the Ahmedabad-based company are selling like hot cakes in the grey market since the announcement of the issue.

“Harsha Engineers is valued at 27.7x FY22 earnings of Rs 11.9 which, in our view, is reasonable compared to its peers,” said

with a ‘subscribe’ rating to the IPO.

Its strong market share in precision bearing cages and leadership position in the organized bearing cages and strong clientele with long-standing relationships provide healthy return ratios and visibility going ahead, it added.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)