Tarsons Products Limited which had tapped the capital markets with its fresh issue for Rs 150 crs and an offer for sale of 1.32 cr shares in a price band of Rs 635-662 listed on the bourses. The discovered price on BSE was Rs 700 at which price 1,30,926 shares were traded. On NSE, the discovered price was 682 at which price 18,90,503 shares were traded. Approximately 20.20 lac shares were traded at the discovered price on the two exchanges combined.
The QIB portion was subscribed 115.77 times, HNI portion was subscribed 184.58 times and Retail portion was subscribed 10.55 times. Employee quota was subscribed 1.83 times. There were 22.22 lac applications and on the basis of lots, the retail portion was subscribed 9.07 times. Overall, the issue was subscribed 77.49 times.
Earlier the company had completed allocation to anchor investors. The company allotted 46,21,757 shares at Rs 662 to 32 entities. The highest allocation was made to Government of Singapore who was allotted 8.66% of the anchor book with its associate, Monetary authority of Singapore who was allotted 4.41%. The total allotted was 13.05% of the anchor book.
This was followed by 9.80% allotted to First Sentier Investors ICVC. This was followed by an identical allotment of 9.80% to two domestic mutual funds who were allotted 9.64% each. They were ICICI Prudential and Aditya Birla Sun Life AMC. The top four anchor investors were allotted 42.13% of the anchor book. Seven domestic mutual funds through 19 schemes were allotted 45.64% of the anchor book.
The high of the day on BSE was Rs 840, the low was Rs 634 and the close was Rs 840. The gain was Rs 178 or 26.89%. On NSE, the high of the day was Rs 818.40, low was Rs 680 and the close was Rs 818.40 a gain of Rs 156.40 or 23.63%. Incidentally on both the exchanges the scrip was locked at the upper circuit.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 700.00 | 840.00 | 634.00 | 840.00 | 178.00 | 26.89 | 803.55 | 2629995 | 1137569 | 43.25 |
| NSE | 682.00 | 818.40 | 680.00 | 818.40 | 156.40 | 23.63 | 764.01 | 13210034 | 5848447 | 44.27 |
| Total | 15840029 | 6986016 | 44.10 |
The traded volume on the two exchanges combined was 158.40 lac shares which was 1.02 times the IPO size of 154.65 lac shares and 1.46 times the non-anchor portion of 108.44 lac shares. Delivery volume was 69.86 lac shares which was 44.10% of the traded volume. It was 45.17% of the issue size and 64.42% of the non-anchor portion. The weighted average of the day’s trade was Rs 803.55 on BSE and Rs 764.01 on NSE.
In terms of institutional or bulk trade, two buy trades were reported on NSE. First Sentier Investors ICVC, who was one of the prominent anchors, bought 8,17, 029 shares at Rs 751.80. Pacific Assets Trust PLC bought 6,14,773 shares at Rs 751.80. Effectively a total of 14.31 lac shares or 20.49% of the total delivery was absorbed by these two investors.
There was some unusual price movement witnessed at price discovery which seems unnatural considering the cost of funding was in the region of Rs 200plus. This implies that sellers have benefited on tax front as the discovered price was just around the issue price while buyers would have to do with profits and adjustment of grey market premium in cash. It would have to be seen how the stock price fares from hereon.
The issue price of the company was at PE multiples around the 47-49 times its earnings for March 2021. With the closing price being where it is, the PE has moved up to almost 62 times. One hopes the company declares results which would enthuse the market and assist in the party time continuing.
