Tarsons Products IPO GMP, Allotment, Good Or Bad? Open & Close date

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)
• FAQ

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

1. Repayment/prepayment of all or certain of their borrowings;
2. Funding a part of the capital expenditure for the new manufacturing facility at Panchla, West Bengal
3. General corporate purposes

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Tarsons Products IPO financial track record

1. Stable revenue For past three years
2. Consistent increase in profits for the past three years

Tarsons products IPO time table

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Tarsons Products IPO price band

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.

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