You had a decently strong listing in a weak market. How will you utilise the fresh issue of proceeds to close the Rs 150 crore that you have raised?
Tarsons was founded in 1983 by Sanjive Sehgal who is the founder, Chairman and Managing Director of the company. It has been a long journey for Tarsons to overcome a lot of obstacles and become the market leader in its product range in India. Today we have the highest share in terms of market share for Tarsons in India and a very growing market share internationally. We are having a proceeds of Rs 150 crore from this IPO and out of that close to Rs 60-63 crore would go into expansion in the new facilities and about Rs 78 odd crore would go into repayment of debt and about Rs 8-9 crore in general corporate purposes.
How will the debt picture look post this IPO? How will the proceeds be used? Do you have any capex plan?
The debt would be negligible or down to zero post this repayment and we have very strong backers. ADB Partners has been backing us since 2018 and continues to have sizable shareholding of 24-25% post listing. We have also brought in a lot of marquee FII names which have been very bullish on Tarsons.
Could you detail your capex plans? Also, could you tell us more about domestic versus export opportunities for your company?
According to the Frost & Sullivan Report, we have 11-12% of the market and so there is still a long runway to gain market share in India through expansion and new capacities as well as launching of new products.
Internationally, there is an even longer runway because just one-third of our revenue comes from the international market. We see a very long runway and robust growth potential for our products moving forward.
What is the margin differential in the domestic versus international market? Could you give us a sense of the raw material inflationary trends that most of the sectors are witnessing now?
Margins across the board are pretty much stable and there’s not much to differentiate between international and domestic and that is why you do not see a lot of difference in our overall bottom lines when business proportions shift. We believe that margins are very stable all across the board.
Can you talk to us about the broad-based top line number, margins, bottom line and the growth that one could expect?
For Tarsons, listing is just one of the steps in its journey and we continue to work with the same focus and same dedication in winning the trust of more customers internationally as well as in India and improving our existing products in terms of newer capacities, newer technologies as well as launching new products. It is an exciting phase for the company and we look forward to it.
