Tarsons Products stocks surge 20% to Rs 808 per share post flat debut on bourses

Tarsons Products stocks surged nearly 20 per cent to Rs 808 soon after listing flat at Rs 700 per share on the BSE. The stocks were listed at a premium of 5.74% on the BSE against its issue price of Rs 662 per equity share. The gain against listing price was Rs 38 per share.  

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At around 10.05 am, shares of Tarsons Products were trading with gains of 16.84% or higher by Rs 73.50 at 773 per share in the BSE's intraday trade.

The shares were listed a little lower-than-expected price of the street.  

"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℅)," had said Aayush Agrawal, Sr. Research Analyst, Merchant Banking, Swastika Investmart Ltd, on Thursday.  

Zee Business Managing Editor Anil Singhvi had also expected the shares to list around Rs 800-850 per share. "Hold with stoploss of Rs 750 and keep trailing the stoploss," he had suggested.  

The initial public offer (IPO) of Tarsons Products was subscribed 77.49 times on the last day. Non-Institutional Investors (NIIs) portion was booked 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.

Tarsons Products IPO opened on November 15 and concluded on November 17, 2021. The company had 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.    

(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.)