Tarsons Products shares rallied sharply on Friday, minutes after having made a tepid debut on the stock exchanges. The stock price rose 20% from the IPO price within minutes to trade at Rs 795 per share, after having listed at a lukewarm Rs 700 apiece. Tarsons Products shares were offered at Rs 662 apiece during the IPO earlier this month. Tarsons Products, a life sciences company, garnered a strong response from investors earlier this month, with all pockets of investors oversubscribing their portion by a strong margin. Overall the IPO of Tarsons Products was subscribed a massive 77.49 times. On listing the stock had a market capitalization of Rs 3,724 crore.
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The IPO of Tarsons Products was subscribed 115 times by Qualified Institutional Buyers (QIB), while Non-Institutional Investors’ subscription was more than 184 times the reserved quota. Retail subscription for Tarsons Products was more than 10 times their portion. Post issue the shareholding of promoters of the company has dropped to 47.3% from 50.78% earlier while public shareholding is up at 52.7% from 49.22%.
Tarsons Products is engaged in the designing, development, manufacturing and marketing of consumables and reusables used in various laboratories. “The company has a diversified product portfolio with over 1,700 SKUs across 300 products catering to research organizations, academic institutions, pharmaceutical companies, contract research organizations, diagnostic companies, and hospitals,” said analysts at Marwadi Financial Services. Tarsons Products has no listed peers on the stock exchanges.
In terms of valuations, considering the TTM (June 2021) adjusted EPS of Rs.16.30 on post-issue basis, the company is going to list at a P/E of 40.61 with a market cap of Rs.35,223 mn, said analysts at Marwadi Financial Services. The brokerage firm had assigned a ‘subscribe’ rating to the IPO considering it a leading Indian supplier to life sciences sector with strong brand recognition.