Tarsons Products IPO: Nine things you should know

The Rs 1,023.47 crore initial public offer (IPO) of Kolkata based Tarsons Products is set to hit the street next week. Here are nine things that you should know about the IPO.

Open and close date: The offer will open for subscription on November 15 and the bidding will close on November 17. The anchor book, if any, will open for a day before the issue opening.

Price band: The price band for the leading life sciences company has been fixed at Rs 635-662 per share having a face value of Rs 2 per share.

Lot size: Investors can bid for a minimum of 22 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,564 at the higher end of the price band. A retail investor can at max apply for 13 lots or 286 shares for Rs 1,89,332.

Issue size: The Rs 1,023.47-crore public offer comprises fresh issuance of equity shares of Rs 150 crore, and an offer for sale (OFS) of 1,32,00,000 shares totalling to Rs 873.47 crore by by promoters and an investor.

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.

Objective of issue: The company will utilise net proceeds of fresh issue towards repayment/prepayment of all or certain of it’s borrowings. It will also deploy funds towards capital expenditure for new manufacturing facility at Panchla, West Bengal and also to meet general corporate purposes.

What’s in it for retail investors: Not more than 50% of the total offer has been reserved for qualified institutional buyers, up to 35% for retail investors, and the rest 15% for non-institutional buyers.

About the company: Tarsons Products Limited is a leading Indian life sciences company with more than three decades of experience in the production and supply of labware products. The company manufactures a range of quality labware products that helps advance scientific discovery and improve healthcare systems.

Currently, the company has 5 manufacturing facilities located in West Bengal spread across approximately 20,000 sq. mts of area. The company has a strong distribution network across India comprising of over 141 authorized distributors as of March 31, 2021 and supplies its products to more than 40 countries.

On the financial front, company’s revenues jumped to Rs 234.29 crore in FY21 compared to Rs 184.72 crore in FY19. While the company reported a profit after tax of Rs 68.87crore in FY21 versus Rs 38.96 crore posted in FY19. Whereas for the Q1FY22 it posted a profit of Rs 24.83 crore on revenues of Rs 71.13 crore.

Book Running Lead Managers and Registrar to the IPO: The book running lead managers to the issue are ICICI Securities, Edelweiss Financial Services and SBI Capital Markets. The registrar to the issue is KFintech.

Issue timeline: The issue is likely to finalize the basis of allotment by November 17, and the initialization of refunds will take place by November 24. While the credit of equity shares to depository accounts of the allottee will be done on November 25. The company is expected to make its stock market debut on November 26, 2021.