Tarsons Products has announced the opening of its IPO on Monday 15th November. Tarsons is a company with a 30 year pedigree and a major player in the Indian life sciences space. The focus of Tarsons is on labware products assisting scientific discovery. Here is a gist.
7 things to know about the Tarsons Products IPO
1) Tarsons Products is a life sciences company with focus on labware products. Its diversified life sciences product portfolio encompasses 1,700 SKUs across over 300 products. It manufactures laboratory consumables and also laboratory reusables.The addressable market for labware products is quite large in India.
2) Tarsons labware products find applications across a gamut of institutional clients including research organizations, pharmaceutical companies, academic institutes, contract research organizations, diagnostic companies, hospitals and medical labs. Tarsons also supplies its products to over 40 countries.
3) The IPO will be a combination of fresh issue and offer for sale (OFS). The fresh issue size will be Rs.150 crore while the OFS will be worth Rs.873.47 crore. This will take the total issue size to Rs.1,023.47 crore.
The price band for the IPO has been fixed at Rs.635-Rs.662 and the minimum application lot size will be of 22 shares.
4) The IPO will open for subscription on 15-November and close for subscription on 17-November. The basis of allotment will be finalized on 23-November while the refunds will be initiated on 24-November.
The shares will be credited to eligible investor demat accounts by 25-November while the stock will be listed on 26-November.
5) Tarsons currently has 5 manufacturing plants located across West Bengal supported by a network of 141 authorized distributors. The fresh issue component will be utilized by Tarsons to set up a new manufacturing facility in Panchia in West Bengal. Part of the funds will also be utilized to repay or prepay debt.
6) Tarsons is consistently profit making over last 3 years. For FY21, Tarsons reported revenues of Rs.234.92 crore and net profits of Rs.68.87 crore implying net margins of 29.3%.
The company has remained profitable in the June 2021 quarter also. Net margins have been above 20% in the last 3 years.
7) The Tarsons IPO will be lead managed by Edelweiss Financial Services, ICICI Securities and SBI Capital Markets. KFintech (formerly Karvy Computershare) has been appointed the registrar to the IPO.
The only overhang for the stock could be that Glenmark Life Sciences, which listed couple of months back, is currently quoting nearly 20% below the IPO price.
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