Life sciences company Tarsons Products listed on the exchanges on Friday amid a sharp sell-off in the markets. The stock listed at Rs 700 on the BSE — a premium of 5.7% against its issue price of Rs 622. On the NSE, the stock got listed at Rs 682, a premium of 3%. The stock then hit its upper circuit level of 20% in the afternoon deals and finally closed at Rs 840 on the BSE, up 26.89%.
However, the listing was below expectations as analysts and investors expected a 20 to 25% surge in the stock amid a hefty grey market premium before the listing. A weak trend in the secondary markets due to the panic sell-off over worries of a new mutation of the coronavirus slightly impacted the listing of the company,said analysts. The BSE Sensex closed lower by 1,687.94 points or 2.87% at 57,107.15 on Friday.
The Rs 1,023-crore IPO witnessed an overall subscription of 77.49 times between November 15 and 17, mainly backed by strong interest from institutional investors. The company also raised Rs 306 crore from anchor investors ahead of its initial public offering.
The company intends to utilise the proceeds from the IPO for debt repayment, to fund a part of capital expenditure for the new manufacturing facility in West Bengal, and for general corporate purposes. The company has also proposed to be debt-free post the IPO and to further boost its revenues. The firm is one of India’s leading labware manufacturing companies, with a robust market share of 9% to 11%. Furthermore, the Indian labware market is expected to grow at a CAGR of 7.8% over FY20-25, and the plasticware sub-segment is expected to grow at a faster 16% CAGR over FY20-25, said brokerages.