Tarsons Products makes a decent stock market debut amid weak market trend; lists at 6% premium

• Shares of Tarsons Products listed at ₹700 while the price band was fixed at ₹635-662 per share.
• The IPO was a hit among investors as it has been subscribed just 77.49 times on the last day of the bidding.
• The market capitalisation of the company stood at ₹3,724 crore.

Shares of Indian labware company Tarsons Products made a decent listing on the National Stock Exchange (NSE) and BSE despite weak market trends. The stock listed at ₹700, higher 5.74% on the issue price band of ₹635-662 apiece.

Investors were expecting a positive listing despite weak market trends as the fundamentals of the company like becoming debt-free, having strong cash flow looked attractive.

“The company has a strong cash flow and it is likely to become debt-free post-IPO [initial public offering] 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 because we are expecting some listing gain of around 20-25% based on subscription figure and grey market trend current GMP 180 (+27%),” said Aayush Agrawal, senior research analyst, merchant banking at Swastika Investmart.

Post listing, the market capitalisation of the company stood at ₹3,724 crore, according to BSE data.

The shares of Tarsons Products were trading at ₹722, higher by 9% at 10.00 a.m., on November 26.

The grey market had indicated a strong listing too as unlisted shares of Tarsons Products were commanding a marginal premium of ₹180 per share.

The IPO, which was open between November 15 and November 17, received strong response from investors. It was subscribed 77.49 times on the last day of the bidding.

Tarsons Products is engaged in designing, developing, manufacturing and supplying a diverse range of quality labware products used in laboratories across research organisations, academic institutes, pharmaceutical firms, diagnostics companies and hospitals.

Some of the company’s clients include Dr Reddy's Laboratories, Metropolis Healthcare, Dr. Lal Path Labs. Tarsons sells nearly one in every ten labware products sold in India.

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Reliance Industries, Tarsons Products, Asian Paints and other hot stocks on November 26