Tamilnad Mercantile Bank Limited IPO Message Board (Page 13)

Gmp

happy teacher day to dear sir
@aniketIAF ,@anantagg sir, @Eagle Eye, @Lokes, @Noorul, , Team Chittodgadh, etc. (I am missing out on some other prominent names, which I will add later...)
i will earn without your knowledge
thanks all of you sir

mistake
i will not earn without your knowledge.
thanks to all

Avoiding.
Though individual companies may have good fundamentals, My overall belief is downtrend. Looking at high inflation in western countries and China down trend, war, volatile oil etc, I still feel there going to be another big correction in offering. I am booking profits/partial exiting some in my portfolio where ever there are 52-week high.
Will sit out IPOs for most.

GMP,?

For all respected Members of this forum including team Chittorgarg

Celebrating the teachers in our lives and express our gratitude for their guidance and influence. This day celebrates all the gurus who played a significant role in shaping who we are as people and taught us everything about this world.

To All the Teachers (Gurus) in this forum...

Eagle Eye, Lokes, Noorul, AsokeDa, Crow, OuAi, Shahukaar, JethaJi, Ravi, Team Chittodgadh, etc. (I am missing out on some other prominent names, which I will add later...)

Naman....

Welcome Eklavya. Nice to see you after a long time... Hope you are doing good and minting money on IPOs with every opportunity. Here I may not apply seeing the current trend... Are you going for it or switching to any sme ?

Thanks Noorul! Yes, it's been a while. Hope you are doing good too.
Not really minting, but its coming slow and steady. I too, will most probably not apply here and will try my luck (though difficult) in some SMEs, viz. Viviana etc. depending upon you people's advice on those pages.

In Axis Bank ASBA while try to apply one lot I am getting the following error. ( even though I have sufficient funds in the account).       Total """Amount is less than allowed minimum amount for the category"""" . Please assist.

Which bank gives overdraft against property and allows to apply ipo through current a/c (ie overdraft a/c) without transferring funds to savings account.

@ Nilaykumar , 50% is for their safety margin if we were not able to sell on listing day. For eg if we fell sick or any unknown incident happens. Loan amount can be paid after listing if we are applying only for listing pop. If we are applying for long term then we have to settle early but in both cases minimum period is 15 days so its not a big problem. So you can pay after listing and they will automatically deduct their amount from the proceeds. Procedure is almost same like bajaj. Thanks

@svh ok bhai got it , Thankyou

Pelter of negative points are there. Though the financial is looking good, people looking for long term investment should be aware of the relevant negative points before taking the decision.
1.Litigation : Multiple litigation. As per RHP - No assurance of any early resolution or at all. Adverse development is likely.

2. Whistle-blower : Multiple cases. Still coming in.

3. Contingent liability : Exceeds net asset of 5335 cr .So net asset provided with contingent liability will be negative. It means that in case of dire adverse circumstances, book value of 390 (post ipo) may reduce to zero or negative eating into so much good looking financial and the business of 100 years .

4. Regional concentration : Out of 509 brances 369 in TN.

5. There is corporate question . RBI has asked for this IPO . May be for spreading of inherent risk.
6. Anchor investor's outlook : Not encouraging

7. Above all the serious negative point is the absence of any " identifiable promoter'. In any banking industry, absence of promoter is much like a ship without a radar. I am trying to see through the veracity of this comment with the existing data in hand in respect of share price performance of banks with no or insignificant promoter.

As on 04/09/2022

Sl no.....Bank...............eps..............p/e.............pb.............mcap.............promoter/equi
1 ......Ktk ....................16.6............4.44............0.32..........2292cr.................0
2...south bank.............0.72..........11.37...........0.29..........1705 ...................0
3.city u bank ..............10.98.........16.39...........2.02........13312....................3%
4.Rbl ............................9.77...........12.48..........0.58.........7314......................1%
5.Federal bank............10................11.83..........1.34.......25137.....................5%
6.karur V........................9.9...............6.9.............0.72.........5467.....................2%
7.Dcb............................11.3...............8.2.............0.71.........2881...................16%
8.ICICI bank..................36.84...........23.68...........3.56.....607352....................0
9 * TMB..........................57.67............9.1.............1.41.........8314.....................0

Now you may see the under performance of these banks (except ICICI bank in recent times).
They are historically doing so. I have experience of investment in ICICI bank and ktk bank.Certainly it is not a happy one. I don't find any reason other than absence of promoter and may be market takes it as a huge negative and does not give appropriate price.
Someone may argue with recent price leap of ICICI bank.But it have been a ranked under performer uptill 2016, in 18 and 19 it gave some performance but made a covid low in the range of 280 and since then it has been performing. I don't know how long it will be continued.
I am fairly sure that in case of TMB this factor will be multiplied by other negative factors mentioned earlier.
Therefore, I don't find any reason for long term investment here.

Listing/short time gain : Inspite of so much negativity, prospect of some listing gain can't be ruled out. 45 % of shares will be locked with anchor investors. This is positive. 10 % retail but now good number of NII's behaviour resembles to that of the retailers (long hands having dispelled )
Absence of too many ipo in the main steam coupled with Dreamfolk's good listing may create some extra enthusiasm.

So I shall apply for retail / snii , if there is prospect of listing gain.

The contigent liability for the bank is part of their business obligation ( exposure to Guarantee and Letter of Credit) and the probability of made in to funded liability is very less. Hence this full amount should not be taken in to consideration while arriving net assets.

@Madu
Thank you for your view.
The tune in the first part is generally correct. The second part is also valid. But when the company declares that the contingent liability exceeds net worth , it is dangerous. It may be better assumed that they have undertaken requisite home work before making this comment.

Ulti Ganga.
Usually retailers were offered discount till now but here big crocs 🐊 like PLI scheme yojana. Bigger the investment , higher the discount.
TMB doesn't want to bank on RII and so granted only 10% quota in place of 35%.
Upon TMB you can bank only your hard earned deposit , not investment.
In my earlier post also I commented indirectly not to bank for long term in mid cap and small cap banking stocks.

@svh
Please see page 306 or 307 of RHP. It mentions clearly that as bank was holding more than 50% of networth as cash in last 3 financial year so RII has to be 10%

any reason for not investing bank for long?

Due to on going litigations and pending court cases, TMB has the unique distinction of holding their AGMs on the same day for multiple accounting years one after another for FY2016, 2017, 2018, & 2019 on 28/10/2020 and for FY2020,2021, 2022 on 9/06/2022. I do not know whether RBI and SEBI will allow this practice to continue even after the IPO shares listed.

but the matter is small as per news , only 12k approx share ofs issue. is there any major issue ongoing or anything?

As per my guess total number of investors who have ever invested in SME ipo or purchased in secondary market in lot sizes of 2 lakh or pro rata is not more than 50,000. This is basis allotment schedule of many SME issues and their outstanding share holder base
View of the board?

Upto 1.5 lac

True average 50k .only once it went 1lakh that is for kn agri (very good ipo)

Bandhan bank will not accept ASBA for this IPO.

any reason svh ji ?

They have not updated their software for this IPO.

What is the cut off time for bank of india, on a last day of an ipp?

SBI's time limit is 2 pm

@Avinash, Yes I am using BOI internet banking for ASBA applications for the last 6 yrs and the cut off time is @3.30pm on last day. However, in the last two IPOs I used Axis and HDFC accounts and their cut off times are @3pm & 4pm respectively. Still it is better if you please check with BOI if there is any changes lately.

Market ka simple roll jao aur Market mein ghumo dekho kis Bank mein public jyada jaati hai Shayad HDFC to aap FIR dusre bankon ki taraf kyon dekh rahe Ho 10 Axis Bank khareed lo is IPO mein apply karne se Bator

Yess, my point was...to move price of a large cap stock and to move the price of a small/ mid cap stock requires different amount of money.
We are here to make money from market and not support any company's future endeavours.
So buy small, buy good, make good returns and stay happy.

Monster Zero 👍🏾👍🏾👍🏾
Fundamental ka Funda 🐆🐅

any good mainboard ipo that's expected to open soon?

Please help me with this issue
I have a demet account with name of "Palani Sellamuthu" and sbi saving account with name of "Pazhani S" both linked with same PAN card. While appling RII application with UPI payment mode for apply IPO, Is it impact the chance of IPO allotment?

Doesnt matter
Apply without worry

Surname of 'S' with expansion is allowed but in your case even the spelling of name is not matching. Better to change name in the account in line with pan card. Go directly to bank with pancard and Aadhar and ask them to change the spelling

@Admin
Kaun sa Broker Minor ka Educational Beneficiary Trust Aur Marriage Beneficiary Trust ka Account Open karta hai.

There are two types of trusts in India, registered trusts and unregistered trusts.

1. Registered Trust

A demat account can be opened easily for a registered trust with any broker.

2. Unregistered Trust

A demat account can be opened for an unregistered trust (in the same way as Partnership Firm) where:
> The name on the demat account will be settlers or Trustee's name.
> The PAN number will be of the trust.

If you are interested for more details, please contact ProStocks.com. They will be able to help you with your Trust's account opening.

@Admin
Unregistered Trust
Dhanyavaad

This is the time not to think about this Bank IPO. Nothing coming positive. GMP going down and down. Members are not comfortable with this IPO and posting their negative views. Risk is more. In any circumstances if the market comes in red, the fate of this IPO after closing date will out of imagination. Negative listing also possible. Rest our luck always. It is not necessary to run after each and every IPO. Many SMEs are in line. No need at all to take tension here. Rest all depends on individual only.

From the parent post I can assume he is aware of the fact that investment in primary market / capital market is risky. He is not comparing any IPO with SME. He is just drawing attention towards opportunity in SMEs. There are 8 SMEs finalized so far in this month . There is no harm if anybody is preferring 1 or 2 good SMEs over this IPO after going through RHP assuming he/she is aware about liquidity risk.

@svh
Thanks. Your assumption is absolutely correct. I am not comparing any Ipo with SME. Your single word is according to my feelings drawing only attention.
@arunArun
I am not at all comparing Main and SME IPOs. Even we can't compare. Even nobody can compare. In my entire share market investment life I have never been in favor of SMEs. Till this time I haven't allotted any SME. No doubt I have not applied many SMEs. I am a long time investor and investing for 10-15 or more. But this forum members apply in SMEs heavily. Their own choice.
Have a nice time.

does anybody have an idea regarding the outcomes of the court decision? if it comes in favor of the bank shares may rise appropriately; however, if it comes against the bank; the downfall will be disproportionate, stronger, hard, and difficult to digest. simply speaking, it's not a win-win or win-loss situation. actually, it is a win-big loss situation. ( this is my view based on limited study and knowledge, comments, and disagreements are welcome)- yours NIFTY