About the Company:
Tarsons Products Ltd is an Indian labware company engaged in the designing, development, manufacturing and marketing of ‘consumables’, ‘reusables’ and ‘others’ including benchtop equipment.
Company’s equipments are used in various laboratories across research organizations, academia institutes, pharmaceutical companies, Contract Research Organizations (“CROs”), Diagnostic companies and hospitals
Company manufacture a range of quality labware products which helps advance scientific discovery and improve healthcare.
Company supplies the products to life sciences industry under brand label “TARSONS WITH THE WORDS -TRUST DELIVEREDTM”.
As of June 30, 2021 company had a diversified product portfolio with over 1,700 SKUs across 300 products.
Company’s product portfolio is classified into three key categories which include:
Consumables category includes products such as centrifuge ware, cryogenic ware, liquid handling, PCR consumables and petri dish, transfer pipettes and others.
Reusables, and others.
Reusables category includes products such as bottles, carboys, beakers, measuring cylinders and tube racks. ‘Others’ category includes benchtop instrumentation such as vortex shakers, centrifuges pipettors and others.
Sample images of some products:
Company caters to a diverse range of end customers across various sectors which include research organizations, academic institutions, pharmaceutical companies, CROs, diagnostic companies, and hospitals.
Company’s customers include names such as Indian Institute of Chemical Technology, National Centre for Biological Sciences across academic institutes and research organizations.
Customers in the pharmaceutical sectors include Dr Reddy’s Laboratories. Enzene Biosciences across ; Syngene International, Veeda Clinical Research across CROs.
Customers in the Diagnostic sector includes names such as Molbio Diagnostics, Agappe Diagnostic, Metropolis Healthcare, Dr. Lal Path Labs, Mylab Life Solutions across other sectors such as diagnostics.
Company supplies the products to over 40 countries across both developed and emerging markets through a blend of branded and ODM sales.
Company’s overseas sales in Fiscal 2021 accounted for Rs.75.5 crores representing 33.02% of revenue from operations.
Company distributes the products to these end customers on a pan-India basis through authorised distributors.
Company has long-standing relationships with end customers as well as distributors, which has been achieved by aligning the offerings with their business needs and through the support of an on-ground sales and marketing team.
Indian Laboratory Equipment Market (Ratio of Glassware to Plasticware):
India is expected to see a huge shift in lab equipment from Glassware products to plasticware products due to the latter being favoured more due to its ease of handling, flexibility, and lower costs.
Company’s Manufacturing facilities:
Company currently operates through five manufacturing facilities located in West Bengal.
In total, company’s manufacturing facilities are spread across approximately 20,000 Sq. mts.
Company’s key manufacturing facilities are ISO 9001:2015 and ISO 13485:2016/NS-EN ISO 13485:2016 certified.
In addition, company has received CE-IVD certificate for 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 requirements enabling Company access to the European region.
Installed Capacity, Actual Production and Capacity Utilization:
Competition in the Business:
India market is characterized by the presence of a large number of small and medium domestic suppliers. The Indian demand is predominantly catered to by a mix of domestic and MNC suppliers.
Indian suppliers include companies like Tarsons, Remi, Abdos, Genaxy, Accumax, etc.
The major competition for Tarsons Products Ltd is with the MNCs such as Thermofisher, Eppendorf, Corning, Hettich, Beckman Coulter, IKA, etc. with market share of approximately 30-40% of the Indian market.
While most of the MNCs import their products into India, Tarsons Products manufactures in India providing comparable quality of products as manufactured by the MNCs and competitive prices
- Mr. Sanjive Sehgal (Designation: Chairman and Managing Director)
- Mr. Rohan Sehgal (Designation: Whole-time Director)
Objectives of the Issue:
Offer for Sale: (Rs.874 cr)
- The Selling Shareholders will be entitled to the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale by the Selling Shareholders.
Fresh Issue: (Rs.150 cr)
- Repayment/prepayment of all or certain of our borrowings.
- Funding a part of the capital expenditure for the new manufacturing facility at Panchla, West Bengal (the “Proposed Expansion”).
- General corporate purposes.
|Repayment/prepayment of certain borrowings of our Company||78.5 cr|
|Funding capital expenditure for the Proposed Expansion||62 cr|
Peer Group Comparison:
There are no listed entities whose business portfolio is comparable with that of Tarsons Products Ltd’s business and comparable to their scale of operations. Hence we cannot make any comparison.
Positives for the Company:
Leading Indian supplier to life sciences sector with strong brand recognition and quality products.
- Company is an Indian labware company engaged in the designing, development, manufacturing and marketing of consumables, reusables and bench-top equipment.
- Company has over 36 years of experience in this space and have successfully built ‘Tarsons’ into a leading Indian company in terms of revenue in the plastic labware market in India and gained expertise in the production of a wide range of labware products.
- In the year 2020, company had a market share of 9.00-12.00% of the labware market in India.
Diverse range of labware products across varied customer segments.
- Company is among the top three labware manufacturing companies in India, providing an extensive range of laboratory consumables, reusables and ‘others’ product categories.
- As of June 30, 2021, company had a diversified product portfolio with over 1,700 SKUs products across 300 distinct products and have established prominence in the labware industry in India with a pan-India distribution presence and five manufacturing facilities.
Plastic labware is expected to replace glassware products.
- With high penetration expected in the coming years, plastic labware is expected to replace glassware products by another 15.00% to reach a market share of approximately 67.00% in the global laboratory equipment market by Fiscal 2025, given plastic products are superior in terms of shelf life, handling, and safety benefits.
Well positioned to take advantage of the growing demand and expanding addressable market for plastic labware.
- Company is well positioned to take advantage of the growing demand and expanding addressable market for plastic labware in the domestic and overseas market.
- Company believes these growth drivers will enable company to plan capital expenditure and enhance the ability to benefit from increasing economies of scale, thereby ensuring a competitive cost structure to achieve sustainable growth and profitability.
Enhancing manufacturing capacities in existing product categories to leverage industry growth drivers.
- In order to capitalize on growth opportunities in this sector, company seeks to invest in physical and operational infrastructure to expand the manufacturing capabilities with a focus on expanding capacities in existing product categories and diversifying product portfolio by launching new products.
Financials of the Company:
|(in Crores)||FY 19||FY 20||FY 21||30th June 21|
|Issue Opens on||15th November 2021|
|Issue Closes on:.||17th November 2021|
|Issue Price||Rs.635 – 662|
|Retail Category Allocation||35%|
|Minimum Lot||22 Shares|
|Issue Size||Rs.1024 cr ($136 Million)|
|Market Cap||Rs.3522 cr ($ 469 Million)|
|Listing at||NSE & BSE|
|Equity Shares Offered (Fresh)||2265,861|
|Equity Shares Offered (OFS)||1,32,00,000|
|Equity Shares Offered (Fresh + OFS)||1,54,65,861|
|Equity Shares Prior to the Issue||5,09,40,420|
|Equity Shares after the issue||5,32,06,281|
Also Read : List of Upcoming IPO’s in India.
|Finalization of Basis of Allotment||on or Before 23rd November 2021|
|Initiation of Refunds||on or Before 24th November 2021|
|Credit of Equity Shares:||on or Before 25th November 2021|
|Listing Date:||on or Before 26th November 2021|
Subscription Details: (Will be Updated)
|(Subscription-Category-Wise (no. of times) Till time : 06:00 PM)||Shares Offered||Day-1||Day-2||Day-3|
Note: Retail Subscription on the basis of Applications: 9.07x
IPO Valuation Parameters:
|Earnings Per Share (EPS)||Price To Earnings ratio (PE)||Return on Net Worth (RoNW)||Net Asset Value (NAV)|
|Check IPO Allotment Status:|
KfinTech Website: http://kfintech/IPO/Allotment_Status
BSE IPO Website: https://www.bseindia.com/IPO/Allotment
|Company Contact Info:|
|Tarsons Products Limited
Martin Burn Buisness Park,
Room No. 902 BP- 3,
Salt Lake, Sector- V,
West Bengal, India.
|IPO Registrar Info:|
|KFin Technologies Private Limited
Plot 31 & 32, Financial District,
Hyderabad, Telangana 500032, India
Tel: (91 40) 6716 2222, 1800 309 4001