NS initial public offerThe IPO or IPO of West Bengal based life science company Tarson Products opened on Monday, November 15. The issue of shares worth Rs 1,023 crore will close after two days on November 17 i.e. Wednesday. Through the offer, Tarsons Products aims to come up with a new plant and utilize the proceeds for general corporate purposes. The company, established in 1983, a Labware engaged in the design, development, manufacturing and marketing of ‘Consumable’, ‘Reusable’ and ‘Other’ including Benchtop Equipment used in various laboratories in Research Organizations, Academic Institutions, Pharmaceutical Companies is major. , contract research organizations, clinical companies and hospitals.
Here’s Everything You Need to Know About Tarson Products IPO
Tarson Products IPO Dates
The IPO of Tarson Products will be open from November 15 to November 17. So the bidding process is three days long in case of this company.
Tarson Products IPO Price
The price band for the IPO of Tarson Products has been fixed at Rs 635 to Rs 662 per share. The company is planning to raise Rs 1,023.50 crore through the issue. The company’s fresh issue is worth Rs 150 crore, while the offer for sale price is Rs 873.47, while 1,32,00,000 equity shares have been sold.
To participate in the sale, investors must bid in at least 22 shares and multiples thereof.
Tarson Products IPO GMP
Shares of Tarson Products are trading at Rs 892 on Monday in the gray market. This is an increase of Rs 230 from its upper price band of Rs 662 per share, which is about 135 per cent higher. This indicates a strong listing of shares on BSE and NSE by the end of this month.
Tarson Products IPO Reservation
The IPO of Tarson Products can be subscribed by three categories of investors – Qualified Institutional Buyers (QIBs), Non-Institutional Buyers and Retail Buyers. Of these, qualified institutional buyers can bid 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 for bidding.
Objectives of the issue
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.
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 help advance scientific discovery and improve healthcare. It has a diverse product portfolio with over 1,700 SKUs across 300 products. Consumables include centrifuge ware, cryogenic ware, liquid handling, PCR consumables and products such as petri dishes, transfer pipettes and others. Reusability includes such products as bottles, carboys, beakers, measuring cylinders and tube racks. Others include benchtop instrumentation such as vortex shakers, centrifuge pipettes, and others.
The company’s revenue showed a huge recovery amid a growing need for medical supplies during the pandemic. Tarsan Products’ revenue grew from Rs 184.7 crore to Rs 234.3 crore between 2019 and 2021. According to reports, the bottom line increased from Rs 39 crore to Rs 68.9 crore.
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.
Should you subscribe?
Brokerage house Religare Broking has shared a positive review about the IPO. In a note, it said, “Given a strong market share of 9-12 per cent in India, quality products and strong brand recognition, Tarsons is well-positioned to benefit from the growing industry trends. In addition, it serves various clients Offers a diverse range of Labware products across segments.It has a wide geographical reach through pan-India sales and distribution network.Going forward, it is looking forward to expand its product portfolio, enhance its manufacturing capacity and increase its global footprint. The objective is to continue to focus on maintaining operational efficiency and profitability. The financial performance has been healthy with a CAGR of 13 per cent and 33 per cent in sales and net profit as compared to FY19-21.”
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