Tarsons Products IPO: Opens on November 15; find details before subscribing

Tarsons Products Limited, the labware and life science products company, will launch its initial public offering on Monday, November 15, 2021. The three-day initial share sale will close on Wednesday, November 17, 2021.

The company has fixed the price band for the offer at Rs 635-662 per equity share for its Rs 1,024-crore initial share sale.

The market lot size for the IPO is 22 shares and in multiples thereof. A retail-individual investor can apply for up to 13 lots (286 shares or Rs 189,332). The company is offering a discount of Rs 61 per equity share for the category that is reserved for eligible employees. Employees investing in the public offer can apply for lots worth Rs 5 lakhs.

The initial public offering comprises of fresh issue of upto Rs 150 crore and an offer for sale of up to 1.32 crore equity shares by the promoters and an investor. As a part of the OFS, promoter Sanjive Sehgal will offload up to 3.9 lakh equity shares and Rohan Sehgal will sell up to 3.1 lakh equity shares -- and investor Clear Vision Investment Holdings Pte Ltd will divest up to 1.25 crore equity shares.

ICICI Securities Limited, Edelweiss Financial Services Limited and SBI Capital Markets Limited are the Book Running Lead Managers for the public issue. KFin Technologies Private Limited is the registrar for it. The equity shares will be listed on BSE and NSE. Axis Bank Limited is the sponsor bank for the IPO.

50 per cent of the issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors, while 35 per cent has been set aside for retail investors. The public issue will include a reservation of 60,000 equity shares for employees.

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 Limited is an Indian labware company engaged in the designing, development, manufacturing and marketing of 'consumables', 'reusables' and 'others' including benchtop equipment, used in various laboratories across research organizations, academia institutes, pharmaceutical companies, Contract Research Organizations ("CROs"), Diagnostic companies and hospitals (Source: Frost & Sullivan Report).

It manufactures a range of quality labware products that helps advance scientific discovery and improve healthcare (Source: Frost & Sullivan Report). As of June 30, 2021, the company had a diversified product portfolio with over 1,700 SKUs across 300 products.

Customers

Tarsons Products Limited cater for a diverse range of products across various sectors, which include research organizations, academic institutions, pharmaceutical companies, CROs, diagnostic companies, and hospitals. Some of its end customers include customers such as Indian Institute of Chemical Technology, National Centre for Biological Sciences across academic institutes and research organizations; Dr Reddy's Laboratories, Enzene Biosciences across pharmaceutical sectors; Syngene International, Veeda Clinical Research across CROs; and Molbio Diagnostics, Agappe Diagnostic, Metropolis Healthcare, Dr. Lal Path Labs, Mylab Life Solutions across other sectors such as diagnostics.

Operations

Tarsons Products currently operate through its five manufacturing facilities located in West Bengal. These facilities are vertically integrated and equipped with automated support systems that help them to maintain quality, increase productivity, and reduce costs. Its key manufacturing facilities are ISO 9001:2015 and ISO 13485:2016/NS-EN ISO 13485:2016 certified. In addition, it has also received CE-IVD certificate for its products such as micro and macro tips, cryo vials and centrifuge tubes which indicates that the products of the company have been assessed by the manufacturer and deemed to meet EU safety, health and environmental protection requirements enabling our Company access to the European region.