Tarsons Products IPO listing today: Stocks likely to list at 25% premium; what should investors do post listing?

Shares of Tarsons Products is all set to be listed on exchanges today, November 26, 2021, as per Upstox. The initial public offer (IPO) of Tarsons Products, which closed on November 17, was subscribed 77.49 times on the last day. Against 1,08,44,104 shares on offer, bids were received for as many as 84,02.81,684 shares, showed the BSE consolidated data.    

The Non-Institutional Investors (NIIs) portion was booked a maximum of all categories by 184.58 times, the Qualified Institutional Buyers (QIBs) subscribed the issue 115.77 times and the Retail investors booked the issue 10.56 times. Also, the employees' quota saw 1.83 times bidding on the last day.    

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What should investors do post listing?  
As per the expert, shares of the lab-ware products manufacturer is expected to list at a premium of 20 to 25%.  

Tarsons Products has strong financials, where margins are impressive and it also has well-experienced management, says Aayush Agrawal, Sr. Research Analyst, Merchant Banking, Swastika Investmart Ltd.  

"The company has a strong cash flow and is likely to become debt-free post IPO. However, the valuations look expensive, therefore aggressive investors with a long-term view can hold this stock, while those who were playing for listing gain should book profit. We expect listing gain of around 20-25%, based on subscription figure and grey market trend current GMP 180 (+27℅)," said Aayush Agrawal.  

Earlier, the IPO of lab-ware products manufacturer opened on November 15 and concluded on November 17, 2021. The company has fixed a price band of Rs 635-662 a share for its Rs 1,024 crore initial share sale and an investor can bid for a minimum of 22 shares and in multiples thereof, showed the red herring prospectus (RHP) of the company.  

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.

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)