Bucking the trend, Tarsons Products shares surge 8% on anchor investors' lock-in expiry day—Anil Singhvi explains why

Bucking the trend on anchor lock-in expiry day, Tarsons Products shares rose 8 per cent to Rs 642 per share in the BSE intraday trade on Thursday. At around 2.50, shares of lab-ware products' manufacturer were trading with Rs 43.15 or 7.24 per cent gain to Rs 639 per share on the BSE. This was apparently after shares touched a new 52-week low of Rs 581.75 amid a spurt in trading volume by 2.48 times on the exchange.  

Traditionally, such stocks on average have seen prices declining on the anchor opening date and further decline have been witnessed in such shares in the next five trading sessions, as per Edelweiss research report.  

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Shares of lab-ware products' manufacturer were listed on the NSE at Rs 682 per share on November 26 and were still near its listing price. As far as Thursday's trading is concerned, shares have rather surged in the afternoon trade.    

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Senior research analyst Kushal Gupta speaking to Zee Business Managing Editor Anil Singhvi, said this can be attributed to the fact that Tarsons Products stocks have not declined much from its listing price.

As far as anchor book details are concerned, as many as 32 anchor investors were allotted shares worth Rs 306 crore on November 12, he said. "At the rate of Rs 662 per share, 46.2 lakh shares were subscribed in the anchor book. This contributed 9% of the total outstanding shares," said Kushal.

Anil Singhvi said it may be also as the stock price is still trading below listing price and anchor investors might see some value unlocking in the shares.  "This may also be because there are some big names like the Government of Singapore (8.66%), the Monetary Authority of Singapore (4.4%), and Abu Dhabi Investment Authority (7.57%), for whom the invested amounts are minuscule," opined Anil Singhvi.  

After Latent View, Tarsons Products is the second stock to see the mandatory deadline of anchor investors to sell shares lifting this week. Earlier this week, shares of Latent View Analytics were locked in a lower circuit of 9.99% on anchor investor's expiry day on Monday.