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Tarsons Products Files DRHP with SEBI, Raise Funds via IPO

14 September 20236 mins read by Angel One
Tarsons Products Files DRHP with SEBI, Raise Funds via IPO
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Tarsons Products has filed preliminary papers with the Securities and Exchange Board of India to float its initial public offering. As per the DRHP, its public issue will comprise a fresh issue worth Rs. 150 crores along with a secondary issue of 1.32 crore equity shares. Promoters Sanjive Sehgal and Rohan Sehgal will be divesting 3.9 lakh and 3.1 lakh shares, respectively, via an offer for sale. Moreover, Clear Vision Investment Holdings Pte will offload a maximum of 1.25 crore shares.

The company is considering a pre-IPO placement of Rs. 30 crores before filing its Red Herring Prospectus. In case it completes this private placement, the size of its fresh issue will reduce. There are more details in relation to this upcoming IPO that investors need to know. But before we check them, let’s get to know about this company.

A Quick Look at Tarsons Products

Incorporated in 1983, Tarsons Products is one of the leading life sciences companies in India. It is engaged in the production of high-quality labware products, which plays a vital role in improving healthcare and scientific discovery. Moreover, it manufactures and markets benchtop equipment, consumables, etc.

Some of its noteworthy customers include National Centre for Biological Sciences, Dr Reddy’s Laboratories and Dr Lal Path Labs. This Kolkata-based company has a multifaceted portfolio of products. It had 300 products and more than 1,700 stock-keeping units (SKUs) as of March 2021.

Don’t Miss Out These Details

Remember these crucial details ahead of Tarsons Products’s initial public offering:

  • IPO Opening Date: Not yet announced
  • IPO Closes on: Not yet announced
  • Face Value: 2 per equity share
  • IPO Price Band: Not yet announced
  • Issue Type: Book build issue
  • Market Lot: Not yet announced
  • Minimum Order Quantity: Not yet announced
  • Basis of Allotment Publication Date: Not yet announced

The company aims to fulfil these objectives by raising funds via its initial share sale:

  • Prepayment/ repayment of its outstanding borrowings
  • Financing the capital expenditure requirement for its new production unit in Panchla, West Bengal
  • Fulfilling general corporate purposes

The company has not yet disclosed all details regarding its forthcoming IPO. We’ll update the information once Tarsons Products reveals the same.

Before subscribing to this public issue, it is vital for investors to take several factors into account, such as the company’s strengths and financials.

What Makes Tarsons Products IPO Attractive?

Here are some strengths of Tarsons Products that makes its IPO enticing for investors:

  • Tarsons Products has been engaged in the manufacturing and trading of laboratory ware products for more than 30 years. The company’s promoter, Sanjive Sehgal, has a lot of experience in this field.
  • This company has high profitability margins; Its gross sales have been improving over the past few years.
  • The company has a diverse product portfolio as it manufactures different types of products, including reusables, consumables, and more. Moreover, it has a strong distribution network.
  • Lastly, Tarsons Products has an adequate capital structure along with favourable debt coverage indicators.

Now let’s take a look at some key financial figures of this company.

Some Crucial Financial Highlights

This tabular representation offers an insight into the company’s financial position:

Financial Year Total Assets (Rs.) Total Revenue (Rs.) Profit After Tax (Rs.)
2021 2,959.5 million 2,342.9 million 688.7 million
2020 2,487.06 million 1,800.54 million 405.3 million
2019 2,119.58 million 1,847.19 million 389.5 million

Bottom Line

Tarsons Products has managed to establish a strong brand presence in the domestic market. Its customer base includes reputed academic institutions and research organisations. Moreover, the company also has a strong presence across the diagnostics and pharmaceutical sectors. Accordingly, Tarson Products is well-placed in the industry.

Overall, the outlook for Tarson Products appears to be positive, especially considering the tremendous growth potential of the plastic laboratory ware industry. Hence, investors might want to apply for this IPO. However, they must make sure to consider other factors, such as the weaknesses and threats in relation to the company, before placing the IPO order.


Frequently Asked Questions

  1. Who have been appointed as merchant bankers for Tarsons Products IPO?

ICICI Securities, SBI Capital Markets and ICICI Securities are merchant bankers for the upcoming initial public offering of Tarsons Products.

  1. How can I check Tarsons Products IPO allotment status?

Individuals can check Tarsons Products IPO allotment status via Angel One’s online platform or BSE’s official website.

  1. How can individuals subscribe to Tarson Products IPO?

One can place Tarson Products IPO order by opening a DEMAT account with Angel One. That said, existing clients can log in to their web trading account and book shares without any hassle.


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