Tarsons Products stock rebounded sharply on Friday, minutes after making its timid debut on the stock market. The share price rose 20% from the IPO price within minutes to trade at Rs 795 per share, after being listed at a lukewarm Rs 700 coin. Shares of Tarsons Products were offered at Rs 662 each during the IPO earlier this month. Tarsons Products, a life sciences company, drew a strong response from investors earlier this month, with all pockets of investors significantly oversubscribing their share. Overall, the Tarsons Products IPO was underwritten 77.49 times. When listed, the stock had a market capitalization of Rs 3,724 crore.
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The Tarsons Products IPO was subscribed 115 times by Qualified Institutional Buyers (QIB), while subscription from non-institutional investors was over 184 times the reserved quota. The retail subscription for Tarsons products was more than 10 times their share. After the issuance, the stake of the company’s promoters fell to 47.3% from 50.78% previously, while the public stake rose to 52.7% from 49.22%.
Tarsons Products is engaged in the design, development, manufacture and marketing of consumables and reusable products used in various laboratories. “The company has a diversified product portfolio with more than 1,700 references for 300 products intended for research organizations, universities, pharmaceutical companies, contract research organizations, diagnostic companies and hospitals”, Marwadi Financial Services analysts said. Tarsons Products has no publicly traded peers.
In terms of valuations, considering TTM adjusted EPS (June 2021) of Rs.16.30 on a post-issue basis, the company is going to be listed at a P / E of 40.61 with a market cap of Rs.35 223 million, analysts at Financial Services Marwadi said. The brokerage firm had given the IPO a “subscription” rating, seeing it as one of India’s leading providers to the life sciences industry with strong brand awareness.