Tarsons a leading life science company engaged in the designing, development, manufacturing and marketing of consumables, reusables among others used in various laboratories is planning an IPO to double its capacity at its sixth facility at Panchla. This facility will enable the company to double its production capacity and thereby its revenue.

The IPO consists of a fresh issue of Rs 150 crore and an Offer for Sale by existing investors of approximately Rs 1,350 crore. The total IPO size is Rs 1,500 crore. An amount of Rs. 70.9 crore has been earmarked for funding capital expenditure for the proposed expansion. While Rs. 54 crore will be used from the net proceeds from the fresh issue of up to Rs. 150 crore, the remaining Rs. 16.9 crore will be funded from internal accruals.

The company’s clients include prominent names such as Dr. Reddy’s Labs, Syngene, Dr. Lal Path Labs and Metropolis among others.

At the new facility, Tarsons aims to enhance production capacity in existing products such as micropipette tips, cryovials and launch new products including PCR plates, deep-well plates, screw cap tubes, volumetric flasks and thus provide a platform for the growth of the business. 

Tarsons manufactures benchtop equipment like Centrifuge and Hot Plate Stirrer, which contribute to 5-7% of the company’s total revenue (as of FY21). This is a new area and as of now, the company’s focus is on expanding its current consumables and reusables product portfolio while also entering and expanding into the new product segment comprising PCR, cell culture among others. Tarsons caters to a diverse range of end customers across various sectors which include research organizations, academic institutions, pharmaceutical companies, CROs, diagnostic companies, and hospitals. Some of its end customers include Indian Institute of Chemical Technology, National Centre for Biological Sciences across academic institutes and research organizations; 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 across other sectors such as diagnostics.