Tarsons Products IPO opens tomorrow, 10 things to know before you subscribe

The initial public offering (IPO) of life sciences company Tarsons Products will open for subscription on November 15 and conclude on November 17. The initial share sale comprises a fresh issue of equity shares worth Rs 150 crore and an offer-for-sale of 1.32 crore shares by promoters and an investor.

Here are 10 things to know about the issue and the company:

1 IPO date: The offer opens on November 15 and closes November 17.

2 Offer details: The initial share sale comprises fresh issue of equity shares worth Rs 150 crore and an offer-for-sale of 1.32 crore shares.

3 Price band and lot size: The company has fixed a price band of Rs 635-662 a share for its Rs 1,024-crore initial share sale. Investors can bid for a minimum of 22 shares and in multiples of it thereof.

4 Reserved portions: The IPO sets aside 60,000 shares for employees. Half of the issue size has been reserved for qualified institutional buyers, 15 percent for non-institutional investors, while 35 percent has been set aside for retail investors.

5 Objectives of the public issue: As per draft documents, proceeds from the fresh issue will be used to pay debt, fund part of the capital expenditure for the new manufacturing facility at Panchla in West Bengal and general corporate purposes.

6 Anchor investors: Monetary Authority of Singapore, Government of Singapore, Abu Dhabi Investment Authority, ICICI Prudential Mutual Fund (MF), Sundaram MF, Aditya Birla Sun Life MF, Edelweiss MF and Reliance General Insurance Company are among the anchor investors.

7 Book running lead managers: ICICI Securities, Edelweiss Financial Services and SBI Capital Markets are the lead managers to the issue, while KFintech Private Limited is the registrar.

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8 Company profile: Tarsons Products is engaged in designing, developing, manufacturing and supplying a diverse range of lab-ware products used across research organisations, academic institutes, pharmaceutical firms, diagnostics companies and hospitals. The company operate through its five manufacturing facilities in West Bengal.

9 Offloading by promoters: As a part of the OFS, promoters Sanjive Sehgal will offload up to 3.9 lakh equity shares and Rohan Sehgal up to 3.1 lakh shares. Investor Clear Vision Investment Holdings Pte Ltd will divest up to 1.25 crore equity shares.

10 Financials: The company has reported good revenue growth in the last three years. It generated a standlone revenue of Rs 184.7 crore in FY19 against consolidated revenue of Rs 234.2 crore for FY21. It posted good margins of over 21% in the last 3 years with standlone profits of Rs 38.9 crore for FY19 against Rs 68.8 crore.