Tarsons Products IPO: Everything you need to know

The Rs 1,023.84 crore Tarsons Products IPO will be available for subscription till Wednesday, November 17, 2021, and the price band of the company has been fixed at Rs 635-662 per share.

The IPO comprises a fresh issue of up to Rs 150 crore and an offer for sale (OFS) of up to 1,32,00,000 equity shares.

As a part of the OFS, promoters — Sanjive Sehgal will offload up to 3.9 lakh equity shares and Rohan Sehgal will sell up to 3.1 lakh equity shares — and investor Clear Vision Investment Holdings Pte Ltd will divest up to 1.25 crore equity shares.

The net proceeds from the IPO will be utilised towards paying debt, funding a part of the capital expenditure for the new manufacturing facility at Panchla in West Bengal, and general corporate purposes.

Investors who wish to subscribe to Tarsons Products IPO can bid in a lot of 22 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,564 to get a single lot of Tarsons Products. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).

The applicants also must note that the cut-off time for UPI mandate confirmation is Thursday, November 18, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.

ICICI Securities, Edelweiss Financial Services and SBI Capital Markets are the book running lead managers to the offer while KFin Technologies is the registrar of the issue.

Tarsons Products is engaged in designing, developing, manufacturing, and supplying a diverse range of quality labware products used in laboratories across research organisations, academic institutes, pharmaceutical firms, diagnostics companies and hospitals. It manufactures a range of quality labware products that help advance scientific discovery and improve healthcare.

The company currently operates through its five manufacturing facilities located in West Bengal.

Before heading into the IPO, Tarsons Products raised nearly Rs 306 crore (Rs 3,05,96,03,134.00) from 32 anchor investors in lieu of 46,21,757 equity shares at Rs 662 each, data from the stock exchanges showed.

The anchor investors include the likes of Monetary Authority of Singapore, Government of Singapore, Abu Dhabi Investment Authority, ICICI Prudential Mutual Fund (MF), Sundaram MF, Aditya Birla Sun Life MF, Edelweiss MF and Reliance General Insurance Company among others.

The research teams at Anand Rathi Share and Stock Brokers and Reliance Securities in their respective IPO notes have recommended a “Subscribe” to the offer.

Reliance Securities in its IPO report said, “The IPO is valued at 51x FY21 earnings and 35.5x FY22 annualized earnings, which look to be reasonably priced. TPL does not have any listed peers as of now and thus it is difficult to compare valuations. However, given an increased health awareness among people post Covid-19, a 10.5% CAGR expectation of the global plastic laboratory products market over FY20-FY25E, high market share of plastic labware and expansion programmes, we believe TPL can potentially sustain a healthy growth in the subsequent years. Hence, we recommend SUBSCRIBE to this issue.”

The share allotment is likely to take place on Tuesday, November 23, 2021, and the shares are expected to be listed on Friday, November 26, 2021, according to the timeline given in the red herring prospectus (RHP).