Tarsons Products is set to list its shares on stock exchanges on Friday, November 26. Kolkata-based life sciences company Tarsons Products commanded a premium in the grey market -- an unofficial market for unlisted securities -- ahead of its debut in the secondary market on Dalal Street. Tarsons Products' grey market premium (GMP) was steady at around Rs 180 on Friday, according to dealers.
Most analysts expect Tarsons Products shares to list at a premium.
Aayush Agrawal, Senior Research Analyst-Merchant Banking at Swastika Investmart, expects a listing gain of around 20-25 percent in Tarsons shares.
"Tarsons Products has strong financials where margins are very impressive and it also has a well-experienced management. The company has a strong cash flow and is likely to become debt-free post-IPO. However, its valuations look expensive, therefore aggressive investors with a long-term view can hold this stock," he said.
Agrawal suggests those participating in the IPO for a listing gain to book profit on the listing day.
The Tarsons Products IPO received a commendable response from investors despite being priced on the higher side, said Abhay Doshi, Co-Founder of Unlisted Arena, a portal that tracks grey markets and deals in unlisted securities.
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"Strong growth prospects along with decent margins made the issue attractive... The issue may list around Rs 800-850, a listing gain of around 20 percent, which is reasonable," he said.
Mohit Nigam, Head-PMS at Hem Securities, believes Tarsons Products "might have an impressive opening".
Tarsons Products's initial public offer (IPO) -- which was open for bidding from November 15 to November 17 -- saw an overall subscription of 77.5 times, receiving bids for a total of 84 crore shares as against the 1.1 crore shares on offer.
Tarsons Products' listing comes days after the secondary market debuts of data analytics firm Latent View Analytics and digital payments platform Paytm's parent, One97 Communications.
Barring Paytm, most IPOs in the recent times have been in high demand.
Latent View Analytics, whose shares continue to surge to more reach three times the issue price already since a bumper listing, is the year's third best listing so far. Its shares debuted on the secondary market at a premium of 169 percent, after its IPO was subscribed 326.5 times -- making it the best IPO of the year.
Earlier this month, Sigachi Industries emerged the best listing day gainer of the year, with shares debuting at a 253 percent premium over the issue price. The blockbuster debut followed an IPO that was subscribed 102 times the shares on offer.
(Edited by : Abhishek Jha)
First Published: IST