Shares of life sciences company Tarsons Products made a tepid market debut on Friday. The stock opened for trading at Rs 682 on the National Stock Exchange, compared to the issue price of Rs 662, marking a premium of Rs 20 or 3.02%. On the BSE, Tarsons Products opened at Rs 700, at a premium of 5.74% or Rs 38.
The Rs 1,023.47 crore issue garnered a huge response from investors as it was subscribed 77.5 times receiving bids for 84,02,81,684 shares against 1,08,44,104 shares on offer. The public issue subscribed 10.56 times in the retail category, 115.77 times in QIB, and 184.58 times in the NII category.
Ahead of the IPO, Tarsons Products on 12 November 2021 finalized allocation of 46,21,757 equity shares to anchor investors at Rs 662 per share, aggregating to Rs 305.96 crore.
The IPO comprised fresh issue of equity shares worth up to Rs 150 crore and an offer for sale of up to 1.32 crore equity shares by existing shareholders and investors. The objectives for the fresh issue are to repay/prepay Rs 78.5 crore of certain borrowings, while Rs 62 crore will be used for funding capital expenditure for the proposed expansion. The remaining amount will be used for general corporate purposes.
Tarsons Products is 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. As of June 30, 2021, the company had a diversified product portfolio with over 1,700 stock-keeping units (SKUs) across 300 products.
The company currently operates through its five manufacturing facilities located in West Bengal. These facilities are vertically integrated and equipped with automated support systems that helps maintain quality, increase productivity, and reduce costs. The company supplies its products to over 40 countries across both developed and emerging markets through a blend of branded and ODM (original design manufacturer) sales. Its overseas sales in FY 2021 accounted for Rs 75.59 crore, representing 33.02% of total revenue from operations, with majority of sales being to USA and countries in Europe.
The company reported a consolidated net profit of Rs 24.84 crore on sales of Rs 69.15 crore in the quarter ended June 2021.
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