Initial Public Offering (IPO) of Tarsons Products Limited Has already opened for subscription amid moderate demand from investors. At the end of Day 1, the Indian Labware Company issue is fully subscribed. The shares have been subscribed 1.09 times a day, receiving bids for 1.18 crore equity shares out of 1.08 crore shares for sale. The issue, which ends on Wednesday, November 17, is expected to raise Rs 1,024 crore at the end. The price range has been fixed at Rs 635-662 per piece. The offer size has been reduced from 1.54 crore equity shares to 1.18 crore equity shares as the company had raised Rs 305.96 crore from anchor investors on the preceding day of the offer.
Tarson Products IPO closes tomorrow. In the meantime, let’s take a look at all the key details on the offer.
Tarson Products IPO Subscription Status
On Monday, the day the offer opened, the portion reserved for retail buyers was subscribed 2.12 times, while non-institutional buyers bid for 17 per cent of the shares earmarked for them. Employees, on the other hand, bid for 24,332 shares out of 60,000 units reserved for them. Eligible institutional buyers were yet to place their bids by the end of the first day.
Tarson Products IPO GMP Today
Shares of Tarson Products are trading at Rs 862 in the gray market on Tuesday. This is an increase of Rs 200 from its upper price band of Rs 662 per share, which is over 130 per cent. This indicates a strong listing of shares on BSE and NSE by the end of this month.
Tarson Products IPO Objectives
The proceeds from the Tarson Products IPO will be used by the company in three ways – a) for repayment or prepayment of all or some of its borrowings, b) financing a portion of the capital expenditure for the new manufacturing facility at Panchala, West Bengal for , and c) for general corporate purposes. The Company will not receive any income from the Offer for Sale.
ICICI Securities, Edelweiss Financial Services and SBI Capital Markets are the book running managers of the issue. On the other hand, Kefintech Private Limited will act as the registrar.
key strengths
Tarsons Products Limited, established in 1983, is a leading Zee Indian supplier to the Life Sciences sector with a strong brand identity and quality products. It is one of the top three labware manufacturing companies in India, offering a wide range of laboratory consumables, reusable and ‘other’ product categories. Furthermore, the company operates in an industry that has a large addressable market with longstanding relationships with key end customers. As per Anand Rathi Group, manufacturing capabilities of Tarsons Procts Limited are internally integrated with design and development. All its manufacturing facilities have injection molding and extrusion blow molding machines which are well complemented with advanced automation technologies. Its manufacturing processes are automated with the use of robotics and some other technologies.
Should you subscribe?
Anand Rathi Group: At the upper end of the IPO price band, Tarson Products Ltd. is offered at a P/E of 40.7 times TTM earnings, with a market capitalization of Rs 35,222 million.
The company is a leading supplier to the life sciences sector, with a diverse range of labware products across various customer segments in an industry with a large addressable market. The company has a high profit margin and has recorded RONW 28.19 per cent in FY2011, however valuations are high, hence we give “Subscribe (Long Term)” rating to this IPO.
read all breaking news, breaking news And coronavirus news Here. follow us on Facebook, Twitter And Wire,
,