The IPO of Tarsons Products has opened for subscription. The issue will be open for investment till November 17. The company plans to raise Rs 1024 crore through IPO.
ipo
Tarsons Products has fixed the price band for the IPO from Rs 635 to Rs 662. Apart from issuance of fresh equity shares in this issue, there will also be an offer for sale (OFS). If you are thinking of investing in this issue, then it is important to know the details about it first. Anil Singhvi, Managing Editor of has also given his opinion in this regard.
If you can take risk then
invest money
Anil Singhvi says that in the IPO of Tarsons Products, only those investors should invest money who can take risk and have a long-term outlook. He says that this issue looks expensive, so short term investors are advised to stay away. However, the company has a good track record, financial growth, good cash flow and the company will be debt free after the IPO. But the downside is that the company is very small. On the other hand, the valuation of the stock looks expensive.
Under this IPO, new shares worth Rs 150 crore will be issued. At the same time, 1.32 crore equity shares will be sold under the offer for sale (OFS). Under OFS, promoters of the company Sanjeev Sehgal will sell 3.9 lakh equity shares and Rohan Sehgal will sell 3.1 lakh equity shares. While the company's investor Clear Vision Investment Holdings will sell its 1.25 crore shares. Tarsons Products manufactures labware products.
Price band and lot size
The price band for the IPO of
Tarson Products has been kept from Rs 635 to Rs 662 per share. Wherein the
issue has a lot size of 22 shares. It is necessary to buy a lot. In
terms of upper price band Rs 662, at least Rs 14564 will have to be invested in
it. After this, investments can be made in multiples of 22 shares. ICICI
Securities, Edelweiss Financial Services and SBI Capital Markets are the book
running lead managers to the issue.
How much reserve for whom
About 50 per cent of the IPO is reserved for qualified institutional investors. At the same time, 15 percent is reserved for non-institutional investors. 35% share has been reserved for retail investors. Funds from the IPO will be used to pay off debt, set up a new manufacturing plant and for other corporate purposes.
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