Incorporated in 1983, Tarsons Products Ltd. is one of the leading life sciences companies involved in the manufacturing and supplying of labware products. The company comes with a highly diversified product portfolio, including lab consumables, reusable products and more.
Products manufactured in Tarsons are widely used across hospitals, diagnostic labs, academic institutions, pharmaceutical companies and more.
Tarsons Products currently has 5 manufacturing facilities in West Bengal, sprawling over 20,000 square metres. As of 31 March 2021, the company has a product portfolio with more than 1,700 SKUs for 300 products.
The company has a robust distribution network throughout India, with more than 141 authorised distributors. Moreover, it supplies its products to more than 40 countries.
Tarsons Products IPO: Objectives
Tarsons Products intends to use the proceeds from its public offering for the following purposes:
- To fund a portion of the capital expenditure that is required for the expansion of its facility in Panchla, West Bengal
- To either repay or prepay its borrowings
- For general corporate expenses
Tarsons Products IPO – Details
Tarsons Products filed its DRHP with market regulator SEBI for its IPO on 10 August 2021. The initial public offering of Tarsons Products will include a fresh issuance of shares worth Rs. 150 crores and an offer for sale of 1.32 crores shares by the existing investors and promoters.
The offer for sale will include the offloading of 3.9 lakhs shares by Sanjive Sehgal, and 3.1 lakhs share sale by Rohan Sehgal. Apart from this, Clear Vision Investment Holdings Pvt. Ltd. is set to release around 1.25 crores shares. Tarsons Products IPO will also include a reservation for company employees.
The key details of Tarsons Products IPO are shown in the following tabular representation:
Opening Date – Nov 15, 2021
Closing Date – Nov 17, 2021
Price Band – ₹635 to ₹662 per equity share
Issue Size – ₹1,023.47 Cr
Face Value – ₹ 2 per equity share
Market Lot – 22 Shares
Listing at NSE, BSE
Tarsons Products IPO Important Dates
| IPO Open Date | 15 November 2021 |
|---|---|
| IPO Close Date | 17 November 2021 |
| Date For Basis Of Allotment | 23 November 2021 |
| Initiation Of Refunds | 24 November 2021 |
| Credit Of Shares To Demat ACcount | 26 November 2021 |
Tarsons Products IPO Latest News and Subscription Status Today [Live]
- Day 3: 17th Nov. 2021
- Day 2: 16th Nov. 2021
- Day 1: 15th Nov. 2021
At 10.40:00 AM.
– This IPO has been subscribed 4.18x by 10:40 AM. on Day 3
– It is a public issue of 1,08,44,104 equity shares.
Status of Subscription
– (QIB) Qualified institutional buyers: 1.30x
– (NII) Non-institutional buyers: 4.69x
– (RII) Retail Individual buyers: 5.63x
-Employees: 1.15x
At 11.40:00 AM.
– This IPO has been subscribed 4.80x by 11:40 AM. on Day 3
– It is a public issue of 1,08,44,104 equity shares.
Status of Subscription
– (QIB) Qualified institutional buyers: 1.32x
– (NII) Non-institutional buyers: 5.58x
– (RII) Retail Individual buyers: 6.50x
-Employees: 1.21x
At 12.40:00 PM.
– This IPO has been subscribed 8.06x by 12:40 PM. on Day 3
– It is a public issue of 1,08,44,104 equity shares.
Status of Subscription
– (QIB) Qualified institutional buyers: 1.49x
– (NII) Non-institutional buyers: 19.07x
– (RII) Retail Individual buyers: 7.17x
-Employees: 1.27x
Why Should You Invest in Tarsons Products IPO?
Here are some of the key reasons why Tarsons Products is an ideal investment option: –
- Tarsons Products is one of the top life sciences companies engaged in manufacturing a wide range of lab components. The company is known for its high-quality goods and excellent brand awareness.
- The company comes with a massive client base, including some of the reputed Indian institutions such as Dr. Reddy’s Laboratories, Indian Institute of Chemical Technology, Metropolis Healthcare, Dr. Lal Path Labs, Enzene Biosciences, National Centre for Biological Sciences, and more.
- Tarsons Products has a robust sales and distribution network across the country. It also supplies its products to major international markets.
- The company comes with impressive financials with strong assets, revenue generation and profit.
Financial Highlights
| Financial Year | Total Assets | Total Revenue | Profit After Tax |
| 30 June 2021 | Rs. 3,647.74 | Rs. 711.27 | Rs. 248.35 |
| 31 March 2021 | Rs. 2,959.50 | Rs. 2,342.91 | Rs. 688.70 |
| 30 June 2020 | Rs. 2,356.57 | Rs. 435.73 | Rs. 69.68 |
| 31 March 2020 | Rs. 2,487.06 | Rs. 1,800.54 | Rs. 405.31 |
| 31 March 2019 | Rs. 2,119.58 | Rs. 1,847.19 | Rs. 389.58 |
**Note: Amount is in millions
How to Apply for Tarsons Products IPO?
You can apply for the Tarsons Products IPO in these ways:
Demat Account
1. The existing users of the Angel One platform can click here to apply for Tarsons Products IPO.
2. However, new investors can open a Demat account free of cost on the Angel One platform. Then, investors can log in with the credentials that they receive to start bidding for Tarsons Products IPO.
UPI
Alternatively, you can apply for Tarsons Products IPO through UPI. First, you need to connect your bank account with a preferred UPI platform. Then, link it with your Angel One account. After that, you can use the UPI option present on the Angel One website and app to subscribe to Tarsons Products IPO.
Finally, go to the UPI app to book shares for the IPO.
Tarsons Products IPO – Noteworthy Highlights
The following section consists of some crucial highlights about Tarsons Products that prospective investors should be aware of:
1. The company boasts of having 5 well-equipped manufacturing facilities that are vertically integrated and come with automation facilities. This helps the company to maintain quality while cutting costs.
2. For the financial year ending on 31 March 2021, Tarsons Products registered a 23.67% growth in its net worth along with a 49.36% jump in EBITDA.
3. The total asset of Tarsons Products climbed by 19% during the last financial year.
4. Some of its products, such as cryovials, macro tips, micro tips, and centrifuge tubes, have received CE-IVD certification.
5. The company exports its lab products to more than 40 countries.
6. Tarsons Products come with operating revenue that ranges between Rs. 100-Rs. 500 crores for the financial year that ended on 31 March 2021.
Tarsons Products IPO – SWOT Analysis
Strengths
- Diverse product portfolio: Tarsons Products manufactures and supplies a diverse range of labware components which are broadly classified into consumables, reusable and other products.
The consumable product section includes cryogenic ware, petri dish, PCR consumables transfer pipettes and more. In the reusable segments, the company manufactures bottles, beakers, carboys and more. It also produces vortex shakers, centrifuges and other benchtop instruments. These products are supplied to numerous reputed hospitals, diagnostic centres and national institutions. - Addresses a Large Market: The labware market is witnessing massive growth in India fueled by increased investment, growing awareness for health issues, and enormous growth in the health sector. Tarsons addresses a major domestic and international market and maintains long-term connections with its customers and clients.
- Strong Management Team: Founded in 1983, Tarsons Products is backed by highly experienced promoters and a powerful management team. This has enabled the company to bolster its presence in the Indian labware market.
- Strong Financial Performance: Tarsons has been able to post improved financial performance due to cost-cutting and higher profitability. The company’s revenue and profit have been on a steady rise for the past three years. Its long-term and current borrowings have also come down recently.
Weaknesses
- Cost Overrun or Implementation Delay: The company has five facilities and is planning to build another one. Moreover, it would be working on expanding all the existing facilities. Considering the capacity of the expansion plan, Tarsons might be facing implementation delays or cost overruns.
- Geographical Concentration of Manufacturing Units: All of the manufacturing units of Tarsons Products are located in West Bengal. Around 86.32% of the manufacturing revenue comes from the units located at Dhulagarh and Jangalpur. Such concentration of manufacturing might affect business operations and finances.
- Pending Land Approval at one of the Facilities: The manufacturing facility at Jangalpur is situated on a plot for which the company is yet to receive complete approval. Delay in approval might lead to regulatory actions in the future.
Opportunities
- Expansion of Client Base: The healthcare sector of the country will see significant growth as investments are set to increase. Consequently, the demand for lab consumables and reusable products would jump, leading to a potential expansion of the labware market. Tarsons already has an impressive list of reputed clients. However, it has the potential to expand its client base with rising demand.
Threats
- Rise in Inflation: Inflation rates have been quite volatile in recent years. If inflation rises in the upcoming days, it will lead to increased expenses and reduced revenue generation. This can adversely impact the business prospects and finances of the company.
- Impact of the Pandemic: Although the COVID-19 pandemic has subdued in recent months, the threat still remains. The new virus variants might spark off COVID-19 waves, which can significantly affect the business.
Competitor Analysis: Tarsons Products
Tarsons Products is one of the most notable labware manufacturers in the country, with presence in over 40 countries. Here is a brief overview of some of the prominent competitors of Tarsons Products:
| Competitor | Revenue |
|---|---|
| Innova Corporate | $17 Million |
| Acumen Labware | $5 Million |
| BrandTech Scientific Inc. | $5-$9.9 Million |
| PlastX | $5 Million |
| Jensen Inert Products | $1- $4.9 Million |