The Initial Public Offer, or IPO, of West Bengal based life sciences company Tarsons Products has opened on November 15, Monday. The issue of the Rs 1,023-crore share will close after two days, on November 17, which is on Wednesday. Through the offer, Tarsons Products aims to come up with a new plants and also use the proceeds for general corporate purposes. The company, established in 1983, is a labware major engaged in the designing, development, manufacturing and marketing of ‘consumables’, ‘reusables’ and ‘others’ including benchtop equipment, used in various laboratories across research organizations, academia institutes, pharmaceutical companies, contract research organisations, diagnostic companies and hospitals.
Here is everything you need to know about Tarson Products IPO
Tarson Products IPO Dates
Tarson products IPO will be open from November 15 to 17. The bidding process is therefore three-day long in case of this company.
Tarson Products IPO Price
The price band of Tarsons Products IPO has been fixed at Rs 635 to Rs 662 per share. The company plans to raise Rs 1,023.50 crore though the issue. The fresh issue of the company is worth Rs 150 crore, while the offer for sale is worth Rs 873.47 against the sale of 1,32,00,000 equity shares.
To participate in the sale, investors have to bid a minimum of 22 shares and in multiples thereof.
Tarson Products IPO GMP
Tarsons Products shares are trading at Rs 892 at the grey market on Monday. This is a Rs 230 increase from its upper price band of Rs 662 per share, up by almost 135 per cent. This indicates a strong listing of the shares at the BSE and NSE later this month.
Tarson Products IPO Reservations
The Tarson Products IPO can be subscribed by three categories of investors — qualified institutional buyers (QIBs), non-institutional buyers, and retail buyers. Of these, qualified instituional buyers can put in bids for up to 50 per cent of the shares. Around 35 per cent of the offer is reserved for retail buyers while non institutional buyers can get the remaining 15 per cent shares put up for bidding.
Objectives of Issue
Proceeds from the Tarson Products IPO will be used in three ways by the company — a) For repayment or prepayment of all or certain of its borrowings, b) For funding a part of the capital expenditure for the new manufacturing facility at Panchla, West Bengal, and c) For general corporate purposes.
Tarson Products IPO Valuation
Tarsons Products Limited currently operates through five manufacturing facilities located in West Bengal. The company manufactures a range of quality labware products that helps advance scientific discovery and improve healthcare. It has a diversified product portfolio with over 1,700 SKUs across 300 products. Consumables include products such as centrifuge ware, cryogenic ware, liquid handling, PCR consumables and petri dish, transfer pipettes and others. Reusables include products such as bottles, carboys, beakers, measuring cylinders and tube racks. Others include benchtop instrumentation such as vortex shakers, centrifuges pipettors and others.
The company’s revenues showed a drastic improvement amid the increasing need for medical supplies during the pandemic. The revenue of Tarson Products skyrocketed to Rs 234.3 crore from Rs 184.7 crore between 2019 to 2021. The bottom line surged from Rs 39 crore to Rs 68.9 crore, according to reports.
ICICI Securities, Edelweiss Financial Services and SBI Capital Markets are the book running managers to the issue. On the other hand, KFintech Private Limited will act as the registrar.
Should You Subscribe?
Brokerage house Religare Broking has shared a positive review about the IPO. In a note, it said, “Tarsons is well placed to benefit from growing industry trends given its strong market share of 9-12 per cent in India, quality products and strong brand recognition. Moreover, it provides a diverse range of labware products across varied customer segments. It has a wide geographic reach through its pan India sales and distribution network. Going forward, it intends to expand its product portfolio, enhance its manufacturing capacities, and increase its global footprint. It also aims to continue to focus on maintaining operational efficiency and profitability. The financial performance has been healthy with sales and net profit CAGR of 13 per cent and 33 per cent over FY19-21.”