Shares of leading life sciences company Tarsons Products made its stock market debut on Friday by listing at premium of 3% at ₹682 per share on the NSE as compared to IPO issue price of ₹662 apiece. On the BSE, Tarsons Products shares were trading at 763.60 apiece.
The initial public offering (IPO) of life sciences company Tarsons Products Limited was subscribed 77.49 times on the last day of subscription, 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.
“The company saw a good response from the investors and the IPO was subscribed 77 times. The IPO was priced at 34x on annualized Q1FY22 at the upper price band of 662. Tarsons Products Limited is backed by a strong management team with great brand awareness and high-quality goods. It is one of the leading life sciences suppliers in India. The company aims to be debt fee post the IPO and is planning for Capex which will further increase the revenues,” Santosh Meena, Head of Research, Swastika Investmart.
“We may see profit booking in the stock eyeing the global cues on the concerns of New variant of Covid-19. However, it is expected that we may see demand for the products of Tarsons. The investors who applied for listing gain can keep an SL of 590 while long-term investors can hold the stock. Risk-taking investors can also buy the stock with the same stop-loss,” he added.
The initial share sale had a fresh issue up to ₹150 crore and an offer for sale (OFS) of up to 1,32,00,000 equity shares. It had a price range of ₹635-662 per share. Tarsons Products had raised ₹306 crore from anchor investors ahead of its three-day public issue that had opened on November 15 and closed on November 17.
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 company said that 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.
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