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What the gray market suggests before its debut

Tarsons Products is expected to list its shares on the stock exchange on Friday, November 26. Kolkata-based life science company Tarsons Products earned a premium on the gray market – an unofficial market for unlisted securities – before its secondary market debut on Dalal Street. Tarsons was commanding a Gray Market Premium (GMP) of around Rs 180 before debut, according to dealers.


Aayush Agrawal, senior research analyst and investment bank at Swastika Investmart, expects Tarsons shares to rise around 20-25%.

“Tarsons Products has a strong financial position where the margins are very impressive and it also has well-experienced management. The company has strong cash flow and is likely to become debt-free after the IPO. valuations seem expensive, so aggressive investors with a long-term view can own this stock, ”he said.

Agrawal suggests to those who participate in the IPO for a listing gain to make profits on the listing day.

The Tarsons Products IPO received a laudable response from investors despite a higher price tag, said Abhay Doshi, co-founder of Unlisted Arena, a portal that tracks gray markets and deals in unlisted securities.

“Strong growth prospects and decent margins have made the issue attractive … The issue could go for around Rs 800-850, a gain of around 20%, which is reasonable,” a- he declared.

Tarsons Products’ initial public offering (IPO) – which was auctioned from November 15-17 – saw an aggregate subscription of 77.5 times, receiving bids for a total of 84 crore of shares against 1.1 crore of proposed actions.

The section reserved for qualified institutional buyers (QIBs) saw a subscription of 115.8 times the shares offered. The categories of non-institutional investors and retail investors registered subscriptions 184.6 times and 10.6 times respectively. The portion reserved for employees was counted 1.8 times.

(Edited by : Abhishek Jha)

First publication: STI


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