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Tarsons Products Limited to raise Rs 1,023.47 crore through an IPO, the issue comprises fresh issue of Rs 150 crore and an offer of sale of 1.32 crore shares from the existing shareholders. Subscription window for the IPO will open from 15^th Nov to 17 Nov 2021. Price band is fixed at Rs 635 to Rs 662 per equity share. The face value of each share is Rs 2. Retail investor can apply for 1 lot to 13 lots, each lot comprises 22 shares. Investor can apply for 22 shares and in multiples of 22 shares thereafter so investor can apply for maximum 286 shares under retail category. Shares will be allotted to the investors on 23^rd Nov 2021, and the shares will list on the market on 26^th Nov 2021.

About Company:

Tarsons Products Limited is a leading Indian life sciences company with more than 30 years of experience in the production and supply of labware products. The company manufactures a range of quality labware products. The company's product portfolio is classified into three large categories including consumables, reusables, and others. As of March 31, 2021, the company has a diversified product portfolio with over 300 products.

Trason's products are used in various laboratories across research organizations, academic institutes, pharmaceutical companies, Contract Research Organizations (CRO), diagnostic companies, and hospitals. The company has many reputed institutes, medical labs, and hospitals as its key clients, like Indian Institute of Chemical Technology, National Centre for Biological Sciences, Dr Reddy's Laboratories, Enzene Biosciences across pharmaceutical sectors; Syngene International, Veeda Clinical Research across CROs; and Molbio Diagnostics, Agappe Diagnostic, Metropolis Healthcare, Dr. Lal Path Labs, Mylab Life Solutions etc.

The company has 5 manufacturing facilities in West Bengal spread across approximately 20,000 square meters of area. The company has a strong distribution network across India comprising of over 141 authorized distributors as of March 31, 2021 and supplies its products to more than 40 countries.

Competitive Strengths:

• Leading supplier of life sciences products

According to the report of Frost and Sullivan, Tarson Product limited is the leading company in India in terms of revenue in the plastic labware market in India. Tarsons Products holds 9% to 12% labware market share in India.

• Company offers diverse range of labware products such as pipette tips, petri dish, centrifuge tubes, cryovials, transfer pipettes, bottles, carboys, measuring cylinder, desiccators, minicoolers, cryobox and test tube racks.
• Large market of life sciences industry

The global laboratory equipment market is expected to register a growth of 4.90% CAGR from 2020 to 2025 to reach Rs 153,750 crore (USD 20.5 billion) by 2025 from Rs 121,500 crore (USD 16.2 billion) in 2020

• Well-equipped and automated manufacturing facilities
• Strong sales and distribution network

Company is having a sales and distribution network of 186 active distributors; it comprises 141 active distributors in the domestic market and 45 distributors in the overseas market.

• Experienced Promoter backed by a strong management team
• Company is having strong financials, and company maintained consistent growth.

                                                                                                            All amounts are in INR crore

Risk Factors:

• Tarsons Product limited imports over 75% of its raw materials and from global suppliers located across the world. Company imports its raw material from Europe, Singapore, USA, Malaysia and Taiwan.
• Company’s manufacturing facilities are only at West Bengal, any state disruption and regulation rule can affect the business of the company.
• Company’s business is dependent on its distribution network; any inability to manage the network can have an adverse effect in the business of the company.
• Company requires power, water and fuel for its manufacturing facilities, and energy costs represent a significant portion of the production costs for its operations.
• Many countries including our country India regulating the usage of plastic, and joined with other countries in effort to ban plastic.

Peers of the Company: Company has no listed peer till yet.

Objective: Company to utilize its funds for-

• Repayment of all borrowings;
• Company to expand its manufacturing facility at Panchla, West Bengal
• Few proceeds will be utilized for general corporate purposes

My Observation

Considering all the aspects of the company this IPO seems good to invest in. Investor can invest in this IPO for listing gains as well as for long term.