The initial public offering (IPO) of life sciences company Tarsons Products Limited was subscribed 77.49 times on the last day of subscription on Wednesday, helped by huge interest from institutional investors. The ₹1,023.8-crore IPO received bids for 84,02,81,684 shares against 1,08,44,104 shares on offer.
As per market observers, Tarsons Products shares premium (GMP) surged to ₹175 in the grey market today, up from ₹155 yesterday. The company’s shares are expected to list on stock exchanges BSE and NSE tomorrow on Friday, November 26, 2021.
“Tarsons Products has strong financials where margins are very impressive and it also has well-experienced management. The company has a strong cash flow and it is likely to become debt-free post IPO however the valuations look expensive therefore aggressive investors with a long-term view can hold this stock while those who were playing for listing gain should book profit because we are expecting some listing gain of around 20-25% based on subscription figure and grey market trend,” said Aayush Agrawal, Sr. Research Analyst – Merchant Banking, Swastika Investmart.
The non-institutional investors category (NII) for Tarsons Products IPO was subscribed 184.58 times, Qualified Institutional Buyers (QIBs) bid 115.77 times and Retail Individual Investors (RIIs) 10.56 times. The public issue that was open for subscription from November 15-17 had fixed a price range of ₹635-662 per share.
Tarsons Products is engaged in designing, developing, manufacturing, and supplying a diverse range of quality labware products used in laboratories across research organisations, academic institutes, pharmaceutical firms, diagnostics companies and hospitals. The company currently operates through its five manufacturing facilities located in West Bengal.
The initial public offer (IPO) had a fresh issue up to ₹150 crore and an offer for sale of up to 1,32,00,000 equity shares. It had a price range of ₹635-662 per share. Tarsons Products raised ₹306 crore from anchor investors ahead of its initial share sale.
The proceeds from the fresh issue will be utilised towards paying debt, funding a part of the capital expenditure for the new manufacturing facility at Panchla in West Bengal, and general corporate purposes. ICICI Securities, Edelweiss Financial Services and SBI Capital Markets were the managers to the offer.
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