Tarsons Products Limited IPO subscribed 1.09 times: Check Subscription Status & latest GMP

Tarsons Products opened its Initial Public Offering (IPO) on November 15 2021 and it will remain on the exchange till November 17 2021. The public issue is evaluated at around Rs 1,023.47 crores and was subscribed 1.09 times on November 15. The volume of subscriptions has remained high but the shares of Tarsons Products have come down in the grey market.

Tarsons Products IPO grey market premium (GMP) stood at Rs 180 today as it was reduced by Rs 20 from its evaluation yesterday. It was the second consecutive dip as it was Rs 230 before going down to Rs 200 and subsequently Rs 180. Despite the stock market being heavily active during these weeks, it was rather strange that the share price of Tarsons Products have gone down. The company expects some positive news soon as market observers suggest a change in the mood regarding their shares in the coming days.

The grey market premium is the reflection of the financial gains expected in the market. For example, if the Tarsons Products IPO GMP stands at Rs 180, this suggests that the grey market is expecting the shares of Tarsons Products to be Rs 842 ( Rs 662 + Rs 180). This is 25% higher than the price band of Rs 635-662 per share. GMP is just an estimated data and is not official. It would be a mistake to completely rely on the projected numbers as any small detail could hamper the prices or improve it in the coming days. The balance sheets of the company is also a good indicator as it provides a good picture of the company’s reliability with the funds.

Purpose of the issue

Tarsons Products are expecting to raise at least Rs 1,024 crores from its public issue and has already accumulated Rs 306 crore from its anchor investors before the listing of the issue. The acquired proceedings from the issue will be used to repay the debt and fund the capital expenditure for the company ahead of the construction of its new manufacturing facility in West Bengal. Besides these, the proceedings will be also used for general corporate purposes. The lead investors are expected to be ICICI Securities, Edelweiss Financial Services and SBI Capital Markets.

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