Tarsons Products IPO Day 2 – Issue subscribed 3.58 times led by strong retail investors demand

The initial public offer of Tarsons Products Limited has been oversubscribed 3.48 times on the BSE on the second day as per data published on the website. It was till 5 pm, the BSE website said. Against 1,08,44,104 shares on offer, bids were made for as many as 3,88,07,802 shares around the same time. 

The Retail Individual Investors (RIIs) quota was filled 4.74 times on the second day, as 2,55,42,000 shares bids were received as against 53,92,052 shares offered. The Non-Institutional Investors (NIIs) portion was booked 3.98 times, while the employees' quota saw 1.08 times bidding, and the Qualified Institutional Buyers (QIBs) quota was subscribed 1.3 times on the second day

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The three-day initial public offering (IPO) opened today (November 15) and will conclude on November 17, according to the red herring prospectus (RHP) of the company.

The company has fixed a price band of Rs 635-662 a share for its Rs 1,024 crore initial share sale. Investors can bid for a minimum of 22 shares and in multiple thereof.

The initial share sale comprises fresh issuance of equity shares worth Rs 150 crore and an offer for sale of 1.32 crore equity shares by promoters and an investor. The public issue will include a reservation of 60,000 equity shares for employees.

Tarsons Products IPO Timeline:

Application Start Date: November 15, 2021

Application Closing Date: November 17, 2021

Allotment Start Date: November 23, 2021

Refund Initiation Date: November 2, 2021

Allotment Date: November 25, 2021

Listing Date: November 26, 2021

Should you subscribe? 

Zee Business Managing Editor Anil Singhvi had said the issue size of the IPO is too small and valuations very high. 

He recommended short-term investors to steer away from this IPO and suggested that only risk-taking long-term investors should apply. " If I have to answer directly, my response would be to avoid, but there are other things to consider too," he said.

Company details: 

Tarsons Products is engaged in designing, developing, manufacturing and supplying a diverse range of quality lab-ware products used in laboratories across research organisations, academic institutes, pharmaceutical firms, diagnostics companies and hospitals. The company currently operate through its five manufacturing facilities located in West Bengal.