Tarsons Products Limited is one of the prime contributors in the lab products. The company manufactures the plastic consumables, reusable and durable products which can be used for Research and Development purposes. The company has recorded its portfolio for nearly 300 Products and 1700 SKUs recently in March 2021. Tarsons has been affiliated with many Indian leading firms such as Dr. Reddy’s Labs, Dr. Lal Path Las, Lupin etc. The company has manufacturing facilities in India. It has its export business associates in more than 423 countries. The networking of the company is linked with more than 140 distributors across India.
IPO DETAILS
Tarsons Products Limited IPO is set to launch on 15th Nov., 2021. The subscription timeline extends till 17th Nov, 2021. The size for the IPO is 1023.47 Crore Rs.. Shares issued through Fresh Issue are worth Rs. 150 Crore. Shares issued through Offer for Sale are worth Rs. 873.47 Crore. The lot size is 22 shares and the price range is 635 Rs. – 662 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs.2 and this is a book built issue. The registrar for the company is Karvy Fintech Private Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 15th Nov, 2021 |
| CLOSING DATE FOR IPO | 17th Nov, 2021 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 2 Rs. per share |
| IPO price band | 635 Rs. – 662 Rs. |
| LOT SIZE | 22 shares |
| MINIMUM ORDER QUANTITY | 22 shares |
| ISSUE SIZE | 1023.47 Crore Rs. |
| OFFER FOR SALE | 873.47 Crore Rs. |
| FRESH ISSUE | 150 Crore Rs. |
| LISTING AT | NSE, BSE |
| LISTING DATE | 26th Nov, 2021 |
IMPORTANT DATES
| IPO OPENING DATE | 15th Nov, 2021 |
| CLOSING DATE FOR IPO | 17th Nov, 2021 |
| IPO ALLOTMENT DATE | 23rd Nov, 2021 |
| REFUNDS | 24th Nov, 2021 |
| DEMAT A/C CREDITED ON | 25th Nov, 2021 |
| IPO LISTING DATE | 26th Nov, 2021 |
The Tarsons Products Limited IPO begins for subscription from 15th Nov, 2021. The IPO subscription would continue till 17th Nov, 2021. The allotment status for the shareholders who applied would come on 23rd Nov, 2021. The refunds for the ones who did not get allotment would be initiated on 24th Nov, 2021. The DEMAT accounts of shareholders would be credited on 25th Nov, 2021. The listing of the company would be accompanied on 26th Nov, 2021.
Lead Managers And Promoters
The lead managers are :
- SBI Capital Markets Limited
- ICICI Securities Limited
- Edelweiss Financial Services Limited
The promoters for the Company are Rohan Sehgal and Sanjeev Sehgal.
The minimum lot size for the company is decided at 22 shares. This holding accounts to 14564 Rs.. The maximum lot size is decided at 286 shares. This amounts to Rs. 189332. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 22 shares | 14564 Rs |
| Maximum | 286 shares | 189332 Rs |
OBJECTIVES FOR THE IPO
- The funds can be utilized for General corporate purposes.
- Payment of the previous borrowings and also gathering Capital for the further factory expansion plans at Pachla.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | 2020-21 | 2019-20 | 2018-19 |
| ASSETS | 2959 | 2487 | 2119 |
| REVENUE | 2342 | 1800 | 1847 |
| NET PROFIT | 688 | 405 | 389 |
The assets of the company have increased in the initial year. Tarsons has been increasing the assets by almost 300 Crore Rs and 400 Crore Rs in respective descending years. The company has been high on investment but on the other hand the revenues have been pretty unstable. The revenues went down by almost 50 Crore Rs in 2020. However the profits increased which defines a strong profit margin but the revenue stability is a must for any company. However the company has managed to stay profitable over the period of time. Even during the pandemic the company has managed its streak of constant profits. Hence one can definitely think of investing into the company for a long period of time.
PROS
- Tarsons has more than 300 products in its portfolio.
- The company has more than 3 decades of experience in the field of work
- The major business of Reasons is into consumables. Hence the business cycle keeps on rotating quickly due to constant demand from regular customers.
- One of the prime reasons for investments may be the future prediction with the plastic lab products. It is predicted that the market share will rise from 52% to 67% over the next 5 years. Tarsons being a dominator would definitely benefit from this rise. Also the expansion pan from the company may be due to such projections as well.
CONS
- The pre-issue promoter holding is just 50.75% and the Offer for sale amount is also huge which will definitely reduce the company’s promoter holding. This is never a good sign for any comay where the promoter holding is diluted timely.
Tarsons Products Limited IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section.
- Click the Tarsons Products Limited IPO button and press the BID button.
- Entering the details asked for like UPI ID, Quantity and price.
- Submit the application form for the IPO.
- Visiting the application of UPI for approving the transaction.
Now, applying for an IPO online is possible with most of the Discount and online brokers.
