Tarsons Products IPO (Initial Public Offering) opened for subscription on 15th November 2021 and it will remain open for bidding till 17th November 2021. The public issue worth ₹1,023.47 crore got oversubscribed on first day of bidding as it got subscribed 1.09 times on 15th November 2021. However, it seems that grey market is not much impressed by this subscription status of the life sciences company. As per the market observers, shares of Tarsons Products have come down for second consecutive day in the grey market.
Tarsons Products IPO GMP
According to market observers Tarsons Products IPO grey market premium (GMP) today is ₹180, which is ₹20 below from its yesterday’s GMP of ₹200. Market observers went on to add that Tarsons Products IPO grey market price has dipped for second successive day as it had come down from ₹230 to ₹200 on Monday. They said that share price of Tarsons Products have gone down despite positive mood of the Indian stock markets. However, they expected some improvement in the grey market sentiment as fundamentals of the company indicates promising listing of the public issue.
What this GMP mean?
Market observers maintained that grey market premium reflects about the listing gain expected by the grey market. As Tarsons Products IPO GMP today is ₹180, this means grey market is expecting that shares of Tarsons Products will list at around ₹842 ( ₹662 + ₹180), which is around 25 per cent higher from its price band of ₹635 to ₹662 per equity share.
However, stock market experts said that GMP is not an official data and hence one should not rely on it so heavily. They advised investors to look at the balance sheet of the company as it gives concrete and ideal picture about the status of company’s business.
Advising investors to subscribe Tarsons Products IPO; Astha Jain, Research Analyst at Hem Securities said, “Company is bringing the issue at price band of ₹635 to ₹662 per share at P/E multiple of 34 on post issue FY21 EPS (earnings per share). Company being supplier to life science sector has range of labware products across varied customer segments & is operating in an industry which has an addressable market. Also, company is well-equipped and automated manufacturing facilities with geographic reach through strong sales and distribution network has experienced Promoter backed by a strong management team. Hence we recommend subscribe on issue.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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