Tarsons Products IPO Date, Price, Review, Details Swastika

Tarson Products IPO

 

Rating
SUBSCRIBE

Issue Offer

Issue Opens on Nov 15, 2021
Issue Close on Nov 17, 2021
Total IPO size (cr) 1,023.47
Fresh issue 150.00
Offer For Sale (cr) 873.47
Price Band (INR) 635-662
Market Lot 22
Face Value (INR) 2
Retail Allocation 35%
Listing On NSE, BSE

 

Objects of the issue 

For Repayment/prepayment of liabilities For Funding of the capital expenditure

 

Issue Break-up (%)
QIB Portion 50
NIB Portion 15
Retail Portion 35

 

Shareholding (No. of Shares)
Pre Issue 5,09,40,420
Post Issue 5,32,06,281

 

Indicative Timetable
Finalisation of Basis of  Allotment 23-11-2021
Refunds/Unblocking

ASBA Fund

24-11-2021
Credit of equity shares to  DP A/c 25-11-2021
Trading commences 26-11-2021

About Tarsons Products Limited IPO:

Tarsons Products Limited is a Indian labware company engaged in the  designing, development, manufacturing and marketing of ‘consumables’,  ‘reusables’ and ‘others’ including benchtop equipment, used in various  laboratories across research organizations, academia institutes,  pharmaceutical companies, Contract Research Organizations (‚CROs‛),  Diagnostic companies and hospitals.

Company’s product portfolio is  classified into three key categories which include consumables,  reusables, and others. ‘Consumables’ category includes products such as  centrifuge ware, cryogenic ware, liquid handling, PCR consumables and  petri dish, transfer pipettes and others. ‘Reusables’ category includes  products such as bottles, carboys, beakers, measuring cylinders and  tube racks. ‘Others’ category includes benchtop instrumentation such as  vortex shakers, centrifuges pipettors and others. Company is one of the  leading Indian company in terms of revenue in the plastic labware  market in India

⮚ Company currently operates through their five manufacturing  facilities located in West Bengal. These facilities are vertically  integrated and equipped with automated support systems that help  them to maintain quality, increase productivity, and reduce costs.

⮚ They have over 36 years of experience in life sciences through  which they gained expertise in the production of a wide range of  labware products.

⮚ Company have received CE-IVD certificate for their products such  as micro and macro tips, cryo vials and centrifuge tubes. ⮚ Company supply their products to over 40 countries across both  developed and emerging markets through a blend of branded and  ODM sales.

⮚ They supply products to life sciences industry under the brand label ‚TARSONS WITH THE WORDS -TRUST DELIVEREDTM‛.

Outlook &  Company Valuation:

The company has shown stable growth in  revenue in the last 3 years where we saw a minor dip in FY20 on the  back of COVID-19. Revenue of the company has grown from Rs 184.7  cr to Rs 234.3 cr over the period of FY19 to FY21; during the same  period profit has grown from Rs 39 cr in FY19 to Rs 68.9 cr in FY21.

The margins of the company have grown significantly on the back of  declining debt. Tarsons products limited is a company with great brand  awareness and high-quality goods, India’s leading life sciences supplier.  The company aims to be debt fee post the IPO and is planning for  CAPEX which will further increase the revenues. The IPO is arriving at  a PE of 34x on annualized Q1FY22 EPS of Rs. 4.88 which seems to be  attractively priced. Thus we assign a “SUBSCRIBE” rating for listing  gain and long term.

www.swastika.

For additional information & risk factors please refer to the Red Herring Prospectus 

co.in

IPO Note 

TARSONS PRODUCTS LIMITED 

KEY MANAGERIAL PERSONNEL  

⮚ Sanjive Sehgal is the Chairman and Managing Director of the Company. He holds a bachelor’s degree in science  from Xavier College, Calcutta. He has over 30 years of experience in this Company

⮚ Rohan Sehgal is the Whole-Time Director of the Company. He holds a bachelor’s degree in science (management)  from the University of Manchester. He has over 7 years of experience in this Company.

⮚ Gaurav Podar is the Non-Executive Nominee Director of the Company. He has over 10 years of experience in the  finance industry. He has been Non-Executive Nominee Director in this Company from June 10, 2019.

⮚ Viresh Oberai is the Independent Non-Executive Director of the Company. He holds a bachelor’s degree in history  from the University of Delhi; He has over 22 years of experience with Tata Steel.

⮚ Sucharita Basu De is the Independent Director of the Company. She has over 20 years of experience in commercial  and corporate agreements, capital markets and real estate.

⮚ Girish Vanvari is the Independent Director of the Company. He holds a bachelor’s degree in commerce from the  University of Bombay and is a member of the Institute of Chartered Accountants of India.

⮚ Piyush Khater is the Company Secretary and Compliance Officer of the Company. He holds a bachelor’s degree in  commerce with specialisation in accounting & finance from St. Xavier’s College, University of Calcutta.

He has over  4 years of experience and has previously worked with Ashok Kumar Duggar & Associates. In his last position, he  was assistant manager with Consolidated Consultancy Services Private Limited. Since he joined our Company on  July 28, 2021, he did not receive any remuneration during the Financial Year 2021.

⮚ Santosh Agarwal is the Chief Financial Officer of the Company. He holds a bachelor’s degree in commerce from the  University of Calcutta. He has over 20 years of experience and has previously worked with Polar Fans, Genpact,  ICA group and Gruas Jaso Group. In his last position, he was the chief financial officer and company secretary of  Jaso India. He joined the Company on October 1, 2019

COMPETITIVE STRENGTHS 

⮚ Leading Indian supplier to life sciences sector with strong brand recognition and quality products. ⮚ Company provide a diverse range of labware products across varied customer segments

⮚ They operate in an industry which has a large addressable market with long-standing relationships with key end  customers

⮚ Well-equipped and automated manufacturing facilities

⮚ Wide geographic reach through their pan India sales and distribution network

⮚ Experienced Promoter backed by strong management team

KEY CONCERNS 

⮚ All manufacturing plants are based in West Bengal (Geographical risk).

⮚ Over 85% of the IPO proceeds would go to selling shareholders of the company.

⮚ Company imports over 75% of its raw materials. Any delay, interruption or reduction in supply of raw materials to  manufacture its products can adversely affect its business.

⮚ Company’s manufacturing facilities are concentrated in West Bengal. Such geographical concentration can pose  risk to its business.

⮚ In case of plastic products manufactured by the company gets banned in India or any markets where the company  exports its products can have a material and adverse effect on its business.

www.swastika.

For additional information & risk factors please refer to the Red Herring Prospectus .

co.in

IPO Note 

TARSONS PRODUCTS LIMITED 

COMPARISON WITH LISTED INDUSTRY PEERS 

As per the RHP document, there are no listed entities whose business portfolio is comparable with that of Tarsons’s business and hence we cannot conclude whether the issue price is underpriced or overpriced. However, the IPO is  arriving at a PE of 34x on annualized Q1FY22 EPS of Rs. 4.88 which seems to be attractively priced.

FINANCIALS (RESTATED CONSOLIDATED

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019
Equity Share Capital 1.92 2.00 1.92
Other Equity 2,441.46 1,973.69 1,350.81
Net Worth 2,443.38 1,975.69 1,352.73
Total Borrowings 334.54 358.95 645.13
Revenue from Operations 2,289.11 1,759.02 1,787.48
EBITDA 1,034.38 692.54 716.67
Profit Before Tax 924.34 531.33 558.25
Net Profit for the year 688.70 405.31 389.58

 

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