Tarsons Products IPO: The IPO of the leading life science company Tarsons Products has opened today on November 15. In this IPO of Rs 1024 crore, you can invest in the price band of Rs 635-662 per share by November 17. Under this IPO, new shares worth Rs 150 crore will be issued and under the offer for sale (OFS), the existing promoters and investors will sell 1.32 crore equity shares. 60 thousand equity shares have been reserved for the employees of the company.
Talking about the primary market, its shares in the gray market have reached a premium of about Rs 200 from the upper price of the price band. Market experts have mixed opinions about the valuation of this IPO, but they believe that considering the business condition of the company, one can invest money in it.
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This is the opinion of market experts regarding IPO
- According to Abhay Doshi, founder of Unlisted.com, a website dealing in pre-IPO and unlisted shares, its price is showing an upward trend in the gray market. According to Doshi, this IPO is expensive, but the demand for the kind of products the company produces is looking strong. Apart from this, Torsion Products will benefit from the cost of similar products in the US and stricter pollution regulations in China. In such a situation, Doshi believes that given the better growth prospects of the company, better subscriptions can be available.
- According to Reliance Securities, this IPO is at 51 times the FY21 earnings and 35.5 times the FY 2022 estimated earnings, which looks reasonable. According to analysts at the brokerage firm, since it does not have any listed peers, it is difficult to compare its valuations. However, according to Reliance Securities, increasing health awareness after Corona, the global lab products market is expected to grow at a CAGR of 10.5 percent (Compounder Annual Growth Rate) between the financial year 2020-2025, the large share and expansion of plastic labware. Due to the program, the growth of this company is looking good in the coming time. In such a situation, the brokerage firm has given it a subscribe rating.
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Tarsons Products IPO Details
- Under the Rs 1024 crore IPO of leading life science company Tarsons Products, new shares worth Rs 150 crore will be issued.
- Under the issue, 1.32 crore equity shares will be sold under OFS. Promoters of the company Sanjeev Sehgal will sell 3.9 lakh equity shares and Rohan Sehgal will sell 3.1 lakh shares while investor Clear Vision Investment Holding Private Limited will sell 1.25 crore equity shares.
- A price band of Rs 635-662 per share has been fixed for the issue. The employees of the company will get a discount of Rs 61. The face value per share is Rs.
- The company has fixed a lot size of 22 shares for this issue, that is, according to the upper price of the price band, investors will have to invest at least Rs 14564.
- 50 per cent of the issue has been reserved for Qualified Institutional Buyers (QIBs), 15 per cent for non-institutional investors and 35 per cent for retail investors. Under the public issue, 60 thousand equity shares have been reserved for the employees of the company.
- The money raised through the issue of new shares will be used to repay the debt and fund the capital expenditure of the new manufacturing facility in Panchala, West Bengal. Apart from this, it will be used for general corporate purposes.
- ICICI Securities, Edelweiss Financial Services and SBI Capital Markets have been appointed as merchant bankers for the issue. K Fintech is the registrar of the private issue.
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Details about the company
- Tarsons Products designs and develops the goods used in the lab and then manufactures them and sells them. The products that this company produces are used in research institutes, academic institutes, pharma companies, diagnostic companies and hospitals. Through its products, it helps to increase scientific discoveries and improve the health system.
- Presently this company is doing its business through five manufacturing facilities located in West Bengal.
- As per the data for FY 2021, the company has 141 authorized distributors across the country. Apart from this, it sells its products in more than 40 countries.
- Talking about the financial position of the company, its net profit (Profit After Tax) has increased in the last three financial years. The company’s net profit (standalone) in the financial year 2019 was Rs 38.96 crore, which increased to Rs 40.53 crore in the next financial year. In the financial year 2021, the company had a consolidated net profit of Rs 68.87 crore.