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Tarson Products likely to list at 30% premium after a strong subscription in IPO, says brokerage report

11:13 AM Nov 25, 2021 | FPJ Web Desk

Life Sciences Company, Tarsons Products Ltd. is expected to list at 30 percent premium after a strong subscription in IPO, said Akhil Rathi, Vice President-Advisory at Marwadi Shares and Finance Ltd. "The company’s revenue is stable and increased in FY21 with strong EBITDA margin of 45 percent. It provides a diverse range of labware products across varied customer segment and demand is rising for its products.

"The company’s strategy to strengthening foothold in existing markets and expanding product portfolio indicates revenue visibility in upcoming quarters. Also, it is available at reasonable valuation," he added.

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The IPO of Tarsons Products was oversubscribed 77.49 times between November 15-17. Over 1.08 crore shares of the life sciences company were on offer in the public issue worth Rs 1,023.47 crore.

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Tarsons Products IPO was fully subscribed on the first day of subscription.

The Rs 1,023.84-crore IPO received bids for 1,18,38,926 shares against 1,08,44,104 shares on offer, translating into 1.09 times subscription, according to an update on the NSE.

The category for Retail Institutional Investors (RIIs) was subscribed 2.12 times and non-institutional investors 17 per cent.

The initial public offer has a fresh issue of up to Rs 150 crore and an offer for sale of up to 1,32,00,000 equity shares.

The price range for the offer is at Rs 635-662 per share.

Tarsons Products on Friday raised Rs 306 crore from anchor investors.

The proceeds from the fresh issue will be utilised towards paying debt, funding a part of the capital expenditure for the new manufacturing facility at Panchla in West Bengal and general corporate purposes.

Tarsons Products is engaged in designing, developing, manufacturing, and supplying a diverse range of quality labware products used in laboratories across research organisations, academic institutes, pharmaceutical firms, diagnostics companies and hospitals.

It manufactures a range of quality labware products that help advance scientific discovery and improve healthcare.

The company currently operates through its five manufacturing facilities located in West Bengal.

ICICI Securities, Edelweiss Financial Services, and SBI Capital Markets are the managers to the offer.

The equity shares of the company will be listed on BSE and NSE.

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