As of 11.23 am, the issue garnered 3.13 times bids. It received applications for 4,86,51,042 shares so far against on offer 1,08,44,104 shares. Retail and HNI investors were among the most enthusiastic about the issue.
The majority of the brokerages are positive over the IPO of the Kolkata-based company and have suggested investors bid for the issue both for a listing pop and long-term gains.
“The IPO is valued at 51x FY21 earnings and 35.5x FY22 annualized earnings, which look to be reasonably priced. Given an increased health awareness among people post Covid-19, a 10.5 per cent CAGR expectation of the global plastic laboratory products market over FY20-FY25, high market share of plastic labware and expansion programmes, we believe TPL can potentially sustain healthy growth in the subsequent years,” said Vikas Jain, Senior Research Analyst at Reliance Securities.
The issue of Tarsons Products is a mix of fresh equity shares worth Rs 150 crore, with a face value of Rs 2 each, and an offer for sale (OFS) of Rs 873.47 crore by existing shareholders. The company is selling its shares in the range of Rs 635-662. Investors can bid for a minimum of 22 shares and in the multiples of thereof.
Tarsons Products is raising funds for repayment or prepayment of full or partial borrowings of up to Rs 78.54 crore, to fund the capital expenditure for a new manufacturing facility at Panchla, West Bengal, and also for general corporate purposes.
Tarsons Products Ltd (TPL), incorporated in 1983, is a leading Indian life sciences company involved in the production and supply of labware products.
