Tarsons Products IPO Fully Subscribed On First Day Of Issue

Tarsons Products plans to raise Rs 1,023.84 crore through a public offering with a upper price band of Rs 662 per share. Tarsons Products’ initial public offering (IPO) was oversubscribed 1.09 times on the first day of its offering, with bids for 1.18 crore equity shares out of 1.08 crore on offer.

The offer size was reduced from 1.54 crore equity shares to 305.96 crore after the company raised 305.96 crore from anchor investors on November 12. The deadline for submissions is November 17.

The amount reserved for retail investors was subscribed 2.12 times, while the portion reserved for non-institutional investors was subscribed 17%.

Employees have placed bids for 24,332 of the 60,000 equity shares allotted for them. Bids from qualified institutional purchasers have yet to be submitted.

The business intends to utilise the net proceeds from the new issue to pay down debt and invest in a new production plant in Panchla, West Bengal, among other things.

“On a post-issue basis, the business will list at a P/E (price-to-earnings) of 40.61 with a market valuation of Rs 3,522.3 crore, based on the trailing twelve months adjusted EPS of Rs 16.30.” According to Marwadi Financial Services, “there are no listed businesses whose business portfolio is equivalent to the company’s business and scale of operations.”

The company is a significant Indian supplier in the life sciences market, with excellent brand recognition and quality products, and delivers a comprehensive range of labware products across various customer categories, earning the brokerage a ‘subscribe’ grade. In addition, on an absolute basis, it is accessible at a fair price.

Tarsons Products designs, develops, manufactures, and markets consumables, reusables, and other products, including bench-top equipment.

The company’s product line is divided into three categories: consumables, reusables, and others (it includes benchtop instrumentation such as vortex shakers and centrifuges pipettors).

Customers include the Indian Institute of Chemical Technology, National Centre for Biological Sciences, Dr Reddy’s Laboratories, Syngene International, Metropolis Healthcare, and Dr Lal Path Labs. The company has five manufacturing locations in West Bengal.

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