Tamilnad Mercantile Bank made its debut on Dalal Street on Thursday, in stark contrast to the grey market trend of the past few days. Shares of TMB started trading on the BSE at Rs 510, compared to its IPO price range of Rs 500-525. On the NSE, shares are priced at Rs 495.

Traders say the bank has earned a premium of Rs 5-35 in the grey market (or the unofficial market for unlisted securities) in the past few days.

TMB, one of the oldest private sector banks in the country, closed its IPO last week at Rs 832 crore, almost triple the overall subscription, with moderate demand from investor groups.

Founder and director Manoj Dalmia said those with a long-term view would wait for the share price to rise as Nifty Bank is bullish. “Even those looking for yield can hold for a few weeks, but with stops based on their risk appetite,” he said.

Tamilnad Mercantile Bank’s IPO, which was open for subscription from September 5-7, attracted bids for a total of 2.5 crore shares, compared with 87.1 lakh shares in the offering, exchange data showed. The total subscription volume is 2.9 times.

Shares under the IPO are available for bids at multiples of 28 in Rs 500-525. This makes a batch of Tamilnad Mercantile Bank shares worth Rs 14,000-14,700.

Ahead of the IPO, Tamilnad Mercantile Bank had raised from key investors including Nomura, Societe Generale, Max Life Insurance, Kotak Mahindra Life Insurance and Bajaj Allianz Life by allocating 71.3 lakh shares at Rs 510 per share, Rs 363.5 crore.

Tamilnad Mercantile Bank’s first stock offering on Dalal Street is the third in three weeks after a near three-month lull.

The IPOs of Syrma SGS Technology and DreamFolks Services received a strong response from investors last month. Syrma stock made a strong debut on the secondary market, closing the day at a premium of about 42% to its issue price.