Table of Contents
- Tarsons products IPO introduction
- What are the risk factors in Tarsons Products IPO?
- What are the strengths of Tarsons Products IPO?
- What are the objects of the Offer?
- Tarsons Products IPO financial track record
- Tarsons products IPO time table
- Tarsons Products IPO price band
- Tarsons Products IPO GMP
- Tarsons Products IPO allotment check
- Tarsons Products IPO underpriced or not?
- Tarsons Products IPO is good or bad? (review)
Tarsons products IPO introduction
Tarson Products Limited is a Kolkata-based leading life sciences company, engaged in designing, developing, manufacturing, and marketing labware products. The companies product portfolio is classified into three key categories which include consumables, reusables, and others, and has a portfolio with over 1,700 SKUs across 300 products.
The public offer of Tarsons Products comprises a fresh issue of equity shares aggregating up to Rs. 150 crores and an offer for sale of 1.32 crore equity shares from existing shareholders.
What are the risk factors in Tarsons Products IPO?
1. The IPO proceeds from the offer for sale which is 85% of the net proceeds will directly go into the hands of the shareholders, the company will not be benefited out of it
2. They work in a highly competitive market
3. Ban of plastic products in India and other countries may adversely affect the company
4. A high percentage of revenue is generated from the overseas sale, any interruptions in the overseas sale may adversely affect the company
What are the strengths of Tarsons Products IPO?
1. Leading lab ware company with strong brand recognition and quality products
2. Company manufactures a varied range of labware products in the life sciences sector
3. Company has a pan India distribution network
4. Company is showing a consistent increase in revenue and profitability
5. Company is showing a consistent increase in its margins
6. Company has experienced management and promoters
What are the objects of the Offer?
The Offer comprises the Fresh Issue and the Offer for Sale
The IPO proceeds from OFS which is Rs 873.47 Cr will directly go into the hands of the shareholders
Objects of the Fresh Issue which is Rs 150 Cr
- Repayment/prepayment of all or certain of their borrowings;
- Funding a part of the capital expenditure for the new manufacturing facility at Panchla, West Bengal
- General corporate purposes
Tarsons Products IPO financial track record
- Stable revenue For past three years
- Consistent increase in profits for the past three years
|Financial Year Ended||Revenue (₹ Crores)||Profit for the period (₹ Crores)||EPS (₹)|
|Three months ended June 2020||43.57||6.97||1.33|
|Three months ended June 2021||71.13||24.84||4.88|
Tarsons products IPO time table
|Issue Period||15th November 2021 to 17th November 2021|
|Finalization of Allotment||23rd November 2021|
|Initiation of Refunds||24th November 2021|
|Credit of Shares||25th November 2021|
|Date of Listing||26th November 2021|
|Mandate end date||3rd December 2021|
Tarsons Products IPO price band
|Price range||635 – 662|
|Minimum order quantity||22|
Tarsons Products IPO GMP
Tarson Products IPO Grey market price is Rs 170 ( at a premium of 25.68 % )
Tarsons Products IPO allotment check
Tarsons Products IPO allotment can be checked on the registrar website kfintech.com
Tarsons Products IPO underpriced or not?
Calculating with its upper price band of Rs 662
Now, the EPS (earning per share) for the FY21 is 13.43 so the P.E ratio (price to earnings ratio) comes at 662/13.43 = 49x
And, the EPS for Q1 FY22 EPS is Rs 4.88 so the P.E ratio comes at 662/4.88 = 136x approx but when we annualize it 136/4 = 34x is the annual P.E they are asking for FY22
So, they are asking P.E between 34x to 49x Which is reasonably priced, As per RHP there are no listed peers who are in a similar business so the comparison is not possible
Tarsons Products IPO is good or bad? (review)
Tarson Products is a leading lab ware company in the life sciences sector with a pan India and overseas network, according to its financials the company is doing good with decent and growing margins, and also as there are no listed peers in the market so, it will be a good pick for investment.
Sanjive Sehgal and Rohan Sehgal are the promoters of the company.
Yes, Employee Discount Rs 61 per share
Pre Issue Share Holding
Post Issue Share Holding
The Tarsons Products IPO is subscribed 1.82 times on Nov 16, 2021, 13:56. The public issue subscribed to 3.51 in the retail category, 0.00 in the QIB category, and 0.34 in the NII category.
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