The initial public offering of Tarsons Products, an Indian Labware company, received bids for 1.18 crore equity shares out of 1.08 crore up for grabs, subscribing 1.09 times on the debut day, November 15.
The offer size has been reduced from 1.54 crore equity shares earlier as the company raised Rs 305.96 crore from anchor investors on November 12.
The portion set aside for retail investors was subscribed 2.12 times while non-institutional investors portion was subscribed 17 percent.
Employees, for whom 60,000 equity shares are reserved, have put in bids of 24,332 shares. Qualified institutional buyers are yet to place in the bids.
The issue closes on November 17.
Tarsons Products is planning to garner Rs 1,023.84 crore through the public issue, at an upper price band of Rs 662 per share. The offer comprised a fresh issue of Rs 150 crore and an offer for sale of Rs 873.84 crore by promoters and investors.
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The company plans to use the net proceeds from fresh issue for repaying of debt, and capital expenditure for new manufacturing facility at Panchla, West Bengal, besides general corporate purposes.
“Considering the trailing twelve months (June 2021) adjusted EPS of Rs 16.30 on a post-issue basis, the company is going to list at a P/E (price-to-earnings) of 40.61 with a market cap of Rs 3,522.3 crore. There are no listed entities whose business portfolio is comparable with that of the company’s business and comparable to their scale of operations,” said Marwadi Financial Services.
The brokerage has assigned a ‘subscribe’ rating to this IPO as the company is a leading Indian supplier in the life sciences space with strong brand recognition and quality products and provides a diverse range of labware products across varied customer segments. Also, it is available at reasonable valuation on an absolute basis.
Tarsons Products is engaged in the designing, development, manufacturing and marketing of consumables, reusables and others, including bench-top equipment.
Its product portfolio is classified into three categories – Consumables, Reusables, and Others (it includes benchtop instrumentation such as vortex shakers and centrifuges pipettors).
The company, which operates through five manufacturing facilities located in West Bengal, has customers such as Indian Institute of Chemical Technology, National Centre for Biological Sciences, Dr Reddy’s Laboratories, Syngene International, Metropolis Healthcare, and Dr Lal Path Labs.
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