Tarsons Products IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 16th November 2021 - 12:32 pm

The Rs.1,023.47 crore IPO of Tarsons Products, consisting of a fresh issue of Rs.150 crore and an offer for sale (OFS) of Rs.873.47 crore, saw decent response on Day-1 of the IPO. As per the combined bid details put out by the BSE at the close of Day-1, Tarsons Products IPO was subscribed 1.09X overall, with reasonable demand coming from the retail segment only. The issue closes on 17th November.

As of close of 15th November, out of the 108.44 lakh shares on offer in the IPO, Tarsons Products saw bids for 118.39 lakh shares. This implies an overall subscription of 1.09X.

The granular break-up of subscriptions was dominated by the retail investors. However, the QIB bids and NII bids are expected to gather momentum on the last day, as is the general trend in the IPO market.

Tarsons Products IPO Subscription Day-1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.00 Times
Non Institutional Investors (NII)	0.17 Times
Retail Individuals	2.12 Times
Employees	0.41 Times
Overall	1.09 times

QIB Portion

The QIB portion of the IPO was subscribed Nil times at the end of Day-1. On 12th November, Tarsons Products did an anchor placement of 46,21,757 shares at the upper end of the price band of Rs.662 to 32 anchor investors raising Rs.305.96 crore.

The list of QIB investors included a number of marquee global names like GIC Singapore, Monetary Authority of Singapore, First Sentier Investors, Theleme India Fund, Macquarie and Abu Dhabi Investment Authority (ADIA). Domestic anchor investors included Birla Mutual Fund, Sundaram MF, ICICI Pru MF, Kotak MF, L&T MF, Mirae MF, Reliance General Insurance; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 30.81 lakh shares of which it has got bids for Nil shares on Day-1, implying a subscription ratio of 0.00X for QIBs at the close of Day-1. QIB bids typically get bunched on the last day but the heavy demand for the anchor placement forebodes well for the Tarsons Products IPO subscription overall.

HNI / NII Portion

The HNI portion got subscribed 0.17X (getting applications for 3.90 lakh shares against the quota of 23.11 lakh shares). This is not a very representative response on Day-1 because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO.

Retail Individuals

The retail portion was subscribed an impressive 2.12X at the end of Day-1, showing decent retail appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 53.92 lakh shares on offer, valid bids were received for 114.25 lakh shares, which included bids for 88.47 lakh shares at the cut-off price.

The IPO is priced in the band of (Rs.635-Rs.662) and will close for subscription on 17th November 2021.