Tarsons Products IPO - Subscription Day 3

5paisa Research Team 5paisa Research Team 13th December 2022 - 06:25 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 and Day-2 of the IPO.

As per the combined bid details put out by the BSE at the close of Day-3, Tarsons Products IPO was subscribed 77.49X overall, with good demand coming from the HNI segment followed by the QIB segment and the retail segment with all the segment getting more than fully subscribed. The issue has closed on 17th November.

As of close of 17th November, out of the 108.44 lakh shares on offer in the IPO, Tarsons Products saw bids for 8,402.82 lakh shares. This implies an overall subscription of 77.49X.

The granular break-up of subscriptions was dominated by the HNI/NII segment followed by QIBs and retail in that order. However, the QIB bids and NII bids gathered momentum only on the last day, as is the general trend in the IPO market.

Tarsons Products IPO Subscription Day-3

Category	Subscription Status
Qualified Institutional Buyers (QIB)	115.77 Times
Non Institutional Investors (NII)	184.58 Times
Retail Individuals	10.56 Times
Employees	1.83 Times
Overall	77.49 times

QIB Portion

Let us first talk about the pre-IPO anchor placement. 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.

Check - Tarsons Products IPO - Subscription Day 2

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 3,567.11 lakh shares on Day-3, implying a subscription ratio of 115.77X for QIBs at the close of Day-3.

QIB bids typically get bunched on the last day but the heavy demand for the anchor placement had indicated at a strong response for the Tarsons Products IPO subscription overall.

HNI / NII Portion

The HNI portion got subscribed 184.58X (getting applications for 4,265.48 lakh shares against the quota of 23.11 lakh shares). This is a relatively good response on Day-3 because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, came in on the last day of the IPO.

Retail Individuals

The retail portion was subscribed an impressive 10.56X at the end of Day-3, 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 569.13 lakh shares, which included bids for 431.37 lakh shares at the cut-off price.

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

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Tarsons Products IPO - 7 Things to Know

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