Tarsons Products IPO: High risk investors can put money for long-term, says Anil Singhvi

Tarsons Products IPO has opened for public subscription on Monday, November 15. The three-day initial public offering (IPO) will conclude on November 17, according to the red herring prospectus (RHP) of the company.  

As the Life sciences company IPO opened today, Zee Business Managing Editor Anil Singhvi said: "If I have to answer directly, my response would be it's for long-term with high risk investors, but there are other things to consider too."  

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Singhvi said, in a normal market, he would recommend to ignore the issue at Rs 229 crore revenue, it has PE multiple of 40 and price to book value of Rs 12 and market cap to sales is 14.

"Negatives remain small size issue and high valuations." There are certain positives too which makes for another opinion. "High risk investors can put money for long-term, which means if market goes south ways, the listing could even see a discount," said Anil Singhvi.  

Talking about positives of the company, it has a good financial track record. " Profit margin data is too good to believe. ROE, ROCE and operating margin of company are good. Old promoters with good track record are another advantage. Good cash flow and the company's plan to debt-free, expansion approach are also good things about this company," said the Market Guru.

आज खुलेगा टारसंस प्रोडक्ट्स का IPO

IPO का प्राइस बैंड ₹635-662

टारसंस प्रोडक्ट्स में पैसे लगाएं या छोड़ दें?

जानिए अनिल सिंघवी से इस वीडियो में...

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— Zee Business (@ZeeBusiness) November 15, 2021

The company has fixed a price band of Rs 635-662 a share for its Rs 1,024 crore initial share-sale. Investors can bid for a minimum of 22 shares and in multiple thereof.

The initial share sale comprises fresh issuance of equity shares worth Rs 150 crore and an offer for sale of 1.32 crore equity shares by promoters and an investor. The public issue will include a reservation of 60,000 equity shares for employees.

The proceeds from the fresh issue will be utilised towards paying debt, funding a part of the capital expenditure for the new manufacturing facility at Panchla in West Bengal, and general corporate purposes.
 
(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)