Inside the IPO Filing Process from DRHP to Listing Day

RatingSUBSCRIBE (Long Term Only)Issue OfferIssue Opens on Nov 30, 2021Issue Close on Dec 02, 2021Total IPO size (cr) 7,249.18Fresh issue 2000.00Offer For Sale (cr) 5,249.18Price Band (INR) 870-900Market Lot 16Face Value (INR) 10Retail Allocation 10%Listing On NSE, BSEObjects of the issue ⮚ To augment the company’s capital base and  insolvency level.Issue Break-up (%)QIB Portion 75NIB Portion 15Retail Portion 10Shareholding (No. of Shares)Pre Issue 553,289,944Post Issue 575,620,567Indicative TimetableFinalisation of Basis of  Allotment 07-12-2021Refunds/Unblocking  ASBA Fund 08-12-2021Credit of equity shares to  DP A/c 09-12-2021Trading commences 10-12-2021

SME-IPO of Star Health Insurance is on the boom as Star Health and Allied Insurance Company Ltd is one of the largest  private health insurers in India with a market share of 15.8% in Fiscal  2021. From being the first standalone health insurance ("SAHI") company established in India in 2006, it has grown into the largest SAHI  company in the overall health insurance market in India, according to  CRISIL Research.

Company offer a range of flexible and comprehensive  coverage options primarily for retail health, group health, personal  accident and overseas travel, which accounted for 87.9%, 10.5%, 1.6%  and 0.01%, respectively, of their total Gross written premium (GWP) in  Fiscal 2021.

Individual agents are the primary distributors of the  company's health insurance plans, accounting for 78.9% of their GWP  in Fiscal 2021. In addition, the company has successfully built one of  India's largest health insurance hospital networks, with 11,778 hospitals  as of September 30, 2021.

⮚ Company consistently ranked first in the retail health insurance  market in India based on retail health GWP over the last three Fiscal Years, according to CRISIL Research.

⮚ The retail health market segment is expected to emerge as a key  growth driver for the overall health insurance industry in India after  the COVID-19 crisis in India.

⮚ As of September 30, 2021 its distribution network had grown to  779 health insurance branches spread across 25 states and 5 union  territories in India.

⮚ The company has also successfully built one of the largest health  insurance hospital networks in India, with 11,778 hospitals, of which  7,741 hospitals, or 65.7 percent of the total number of hospitals in  their network, entered into pre-agreed arrangements with in Fiscal  2021.

Outlook & Company Valuation:

The company has mixed set on financials over the  last three years where the company's GWP has increased over the years  while the company suffered a loss in FY21. In FY19, the revenues of the  company were Rs 3713 cr while in FY21 it grew to 5283 cr.

The Profit  was at Rs 128 cr in FY19 while the company suffered a loss of Rs 825 cr  in FY21. The health insurance sector is likely to flourish as individuals  become more aware of the benefits of health insurance. If we look at  the company's financials, we can see that it was doing well until Covid  hit last year. The company has the largest market share which is  positive for the company however the industry is getting competitive.

The valuation of the company is stretched. At the upper price band of  Rs. 900, Star Health is demanding an MCAP to net premium earned  multiple of 10.3x, which is at a premium to the peer average.

IPO Note

STAR HEALTH AND ALLIED INSURANCE  COMPANY LTD IPO

KEY MANAGERIAL PERSONNEL

⮚ Venkatasamy Jagannathan is the Chairman and CEO of the Company. He holds master’s degree of arts in  economics and have more than 47 years of experience in the insurance industry

⮚ Subbarayan Prakash is the Managing Director of the Company. He has several years of experience as a surgeon  and has previously worked with Saudi Operation & Maintenance Company Limited.

⮚ Anand Shankar Roy is the Managing Director of our Company. He holds a bachelor’s degree in commerce and he has 21 years of experience in the insurance industry

⮚ Sumir Chadha is a Non-Executive Nominee Director of the Company he has several years of investing  experience in Indian companies, both public and private.

⮚ Deepak Ramineedi is a Non-Executive Nominee Director of the Company. He has several years of experience in  the private equity industry

⮚ Utpal Hemendra Sheth is a Non-Executive Nominee Director of the Company. He holds a bachelor’s degree in  commerce.

⮚ Rohit Bhasin is an Independent Director of the Company

⮚ Anisha Motwani is an Independent Director of the Company.

⮚ Berjis Minoo Desai is an Independent Director of the Company

⮚ Kaarthikeyan Devarayapuram Ramasamy is an Independent Director of the Company

⮚ Rajni Sekhri Sibal is an Independent Director of the Company

⮚ Rajeev Krishnamuralilal Agarwal is an Independent Director of the Company

COMPETITIVE STRENGTHS

⮚ Largest private health insurance company in India with leadership in the attractive retail health segment.

⮚ Largest and well spread distribution network in the health insurance industry.

⮚ Diversified product suite with a focus on innovation and specialized products.

⮚ Strong risk management with superior claims ratio and quality customer services.

⮚ Substantial investment in technology and innovative business processes.

⮚ Demonstrated track record of operating and financial performance.

⮚ Experienced senior management team with strong sponsorship.

KEY CONCERNS

⮚ Star Health Incurred Claim Ratio has increased from average 63.5% (FY2018 to FY2020) to 94% in FY21 and  91% in Q1 FY22. This is the main reason company has negative revenues and losses in the last 1.5 years.

⮚ The recent Covid-19 outbreak has had a significant impact on the company's business and operations.

⮚ They were able to keep their market share because of their strong brand name. However, if they fail to keep  such a brand name, their business will suffer.

⮚ Company can be subject to claims by customers and/or regulators for alleged mis-selling.

⮚ Insurance companies depend on the accuracy and completeness of information provided by customers and  counter parties for pricing and underwriting their insurance policies.

⮚ Any increase in competition could negatively impact the company’s profitability

IPO Note

STAR HEALTH AND ALLIED INSURANCE  COMPANY LTD IPO

COMPARISON WITH LISTED INDUSTRY PEERS (As on 31st March 2021)

Name of the Company EPS (Basic) NAV P/E Net Worth (cr) RoNW (%)Star Health and Allied Insurance Co Ltd (16.54) 63.58 - 3,484.64 (23.69)% Peer GroupICICI Lombard General Insurance Co Ltd.* 32.41 163.56 46.66 7,435.15 19.81%New India Assurance Co Ltd 9.95 112.17 15.30 18,485.38 8.81%

*ICICI Lombard General Insurance Company Ltd. is not strictly comparable with the Company as they operate under general insurance with health  insurance not forming a significant component, whereas the Company is a standalone health insurance provider.

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Cr) FY 2021 FY 2020 FY 2019Equity Share Capital 548 491 456Other Equity 3,676 1,153 587Net Worth 4,224 1,644 1,043Total Borrowings 250 250 250Premiums earned (Net) 5,023 4,693 3,580Operating Profit/(Loss) (1,071) 361 165Profit Before Tax (1,046) 413 182Net Profit for the year (825) 268 128

A Gurugram based fintech startup Mobikwik, which was planning to go public this year, may defer its plan by two or three months or even more.

The official news of the delayed IPO comes just after Paytm’s gloomy market debut that saw its shares have gone down by 28% or more.

Seeing the current situation in the primary market, the fintech company has been advised to not go ahead with its IPO as it may face difficulties to find right investors both foreign and domestic.

Mobikwik, a small fintech startup compared to Paytm, had submitted its DRHP to SEBI for the SME-IPO in July. This includes a fresh issue of equity of Rs 1500 Crores and an OFfer for Sale (OFS) for another 400 crores.

What was the Original Plan?

The company had plans to hit the markets around Diwali and to raise Rs 1900 Crores approx by issuing its shares to the public. However, the financial advisors had advised the company to wait for the response to Paytm. Also, they suggested not to proceed with the SME-IPO launching, because of the shortening of demand from overseas investors.

After Paytm's debacle, the company is not in a mood to go ahead before January - February 2022.

The firm might have the option to go to the markets in December in case the investors’ reaction is good, if not, the plans might get delayed again.

Paytm's oxymoron listing and proceeding with underperformance, played a vital role in the decision to postpone the IPO plans.

MobiKwik's unlisted stock was trading at around Rs 1,350 before the launch of Paytm's IPO. From that point, the unlisted share price has decreased to about Rs 900, right around 33% lower, according to reports.

MobiKwik has an extraordinary DNA - it was bootstrapped for the initial 4 years and has accomplished its present size of 101 million clients (as of March 2021) having spent just $100 million since its inception.

The fintech startup mainly focuses on Buy Now Pay Later (BNPL) for day to day payments and has the biggest number of pre-supported BNPL users in India at 22.3 million (as of March 2021).

It has consistently adopted a sustainable growth strategy. The organization is seeing solid business development, has a way to productivity and will list at the right time - MobiKwik said according to a report.

Reasons Behind the Fall in the Company Valuations

As Paytm IPO was released with negative reviews, FinTechs have endured the shot and valuations of Mobikwik shares went further downhill by around 30-40 percent.

Indeed, even the retail financial investors are somewhat terrified since the Paytm IPO has drawn down their capital by approx 30%.

In June, the Abu Dhabi Investment Authority put $20 million in MobiKwik, which provided it with a valuation of about $700-750 million. Since the IPO launching, they had been planning to raise a valuation of more than $1 billion. However the reports say that the current financial investors are not in the mood for a public offering.

The interest for anchor books was repressed both from FIIS and domestic financial investors. This could bring about the delaying of the Mobikwik IPO shares. The more demand among anchor financial investors shows the willingness for financial investors to apply for a specific IPO.

A Sneak Peak into Mobikwik

Mobikwik is one of the biggest portable wallets (MobiKwik Wallet) and Buy Now Pay Later (BNPL) players in India dependent on mobile wallet wallet GMV and BNPL GMV, separately, in Fiscal 2021, its DRHP said.

In March, reports recommended that information of almost 110 million clients of MobiKwik was leaked on the dark web available to be purchased by programmers. The dataset included details of KYC documents, Aadhaar cards, Mastercard subtleties, cell phone numbers connected to MobiKwik wallet, and so forth.

The organization, in any case, had denied such information. Resulting reports in October also recommended that this supposed information breach of 3.5 million users at MobiKwik is presently under RBI's scanner.

About MobiKwik

Online wallet firm MobiKwik allows its users to make and get payments across different financial services like loans and insurance protection. It additionally has tie-ups with different monetary firms.

Also, it has been seen that, during the hour of filing DRHP with the SEBI, MobiKwik had a record of conducting nearly 10 Lakh every day transactions on its platform.

Takeaway

Till now, the fintech startup  has not published its quarterly monetary outcomes for the Q2 of FY 2021-22. This shows the willingness of the organization to give Mobikwik IPO shares because the evaluated FS of the new quarter should be distributed before somewhere around 135 days after the end of the quarter.

The organization has saved a hole or pre IPO placements for its shares worth up to Rs 400 crore. MobiKwik’s promoters like Upasana Taku, and Bipin Preet Singh, have intended to sell part of their shares  in the organization's secondary market according to the papers documented with SEBI.

Like Zomato and Nykaa, numerous different organizations are grappling to produce enough revenue just to legitimize their existence.

Rating SUBSCRIBE Issue Offer Issue Opens onNov 17, 2021Issue Close onNov 22, 2021Total IPO size (cr)1013.61Fresh issue125Offer For Sale (cr)888.61Price Band (INR)655-690Market Lot21Face Value (INR)10 Retail Allocation10%Listing OnNSE, BSE Issue Break-up (%) QIB Portion75NIB Portion15Retail Portion10Shareholding(No.ofShares)Pre Issue52,197,390Post Issue54,008,984 Indicative Timetable Finalisation of Basis ofAllotment25-11-2021Refunds/Unblocking ASBA Fund26-11-2021Credit of equity shares toDP A/c29-11-2021Trading commences30-11-2021

SME IPO of Go Fashion gathers a lot of attention as the company Go Fashion (India) Limited is one of the largest women's bottom-wear brands in India. The company is engaged in the development, design, sourcing, marketing, and retailing of a range of women's bottom-wear products under the brand, 'Go Colors'.

The company offers one of the widest portfolios of bottom-wear products among women's apparel retailers in terms of colors and styles. It is among the few apparel companies in India to have identified the market opportunity in women’s bottom-wear and have acted as a ‘category creator’ for bottom-wear.

It was the first company to launch a brand exclusively dedicated to women’s bottom-wear category and have leveraged this advantage to create a direct-to-consumer brand with a diversified and differentiated product portfolio of premium quality products at competitive prices. The company’s bottom-wear products, which include churidars, leggings, dhotis, harem pants, Patiala, palazzos, culottes, pants, trousers and jeggings, are sold across multiple categories such as ethnic wear, western wear, fusion wear, at leisure, denim, plus sizes and girls wear making their portfolio ‘universal’ and for every occasion.

• The women’s apparel market is estimated to be approximately 36% of the total apparel market while the women’s bottom-wear market contributed 8.3% of the women’s apparel market in Fiscal 2020
• The women’s clothing market in India has evolved in the past decade from traditional one-piece apparel to two-piece and mix-and-match apparel, with bottom-wear becoming an essential
• The company serve its customers primarily through its extensive network of 459 EBOs (Exclusive Brand Outlets) that are spread across 23 states and union territories in India, as of September 30, 2021.
• The company have its in-house design and merchandising team that designs and develops bottom-wear products across categories with their deep understanding of consumers’ requirements.

Financials and Outlook

The company has mixed set on financials over the last three years where the company's revenue grew in FY20 and fell back in the year FY21. However, the fall in revenue can be due to COVID-19. Profit also turned negative in a recent year where the company reported a loss of Rs (3.53) cr in FY21 VS a profit of Rs 52.63 cr in FY20. Go Colors has a strong brand value but has fluctuating revenues and the company moved into losses in FY21 but as the number of working women is increasing along with the evolving fashion trend it is expected that the company has strong growth momentum. The company has a mixed bag of financials and IPO is arriving at a P/BV of 13.65 based on its NAV of Rs. 50.56 as of Q1FY22, which seems to be attractively priced for the investors. Thus, we assign a "SUBSCRIBE" rating for listing gain and long term.

KEY MANAGERIAL PERSONNEL

• Prakash Kumar Saraogi is the Managing Director of the Company. He is a promoter of the Company and has over 28 years of experience in garment manufacturing, fashion industry and retail industry.
• Gautam Saraogi is an Executive Director and the Chief Executive Officer of the Company. He is also a promoter of the Company and has over 10 years of experience in consumer retail, marketing, brand building and garment
• Rahul Saraogi is a Non-Executive Director of the Company. He is a promoter of the Company and has over 10 years of experience in the garment industry.
• Ravi Shankar Ganapathy Agraharam Venkataraman is a Non-Executive Nominee Director of the Company. He has over 15 years of experience in private equity funds.
• Srinivasan Sridhar is the Chairperson of the Company’s Board and an Independent Director of the Company He has over 38 years of experience in commercial and development banking and is an associate of the Indian Institute of Bankers.
• Rohini Manian is an Independent Director of the She has over 8 years of experience in real estate and management space.
• Dinesh Madanlal Gupta is an Independent Director of the Company. He has over 37 years of experience in the transport and manufacturing industry.
• R Mohan is the Chief Financial Officer of the He has been associated with the company since April 16, 2019.
• Gayathri Venkatesan is the Company Secretary and Compliance Officer of the company. She has been associated with the company since October 25, 2019.

COMPETITIVE STRENGTHS

• Largest women’s bottom-wear brand in India with well-diversified product
• Multi-channel pan-India distribution network with a focus on EBOs, enhancing brand visibility
• Strong unit economics with an efficient operating model
• Extensive procurement base with highly efficient and technology-driven supply chain management
• In-house expertise in developing and designing products
• Demonstrated track record of strong financial performance
• Continue to expand retail network with a focus on EBOs
• Leverage technology to bring cost efficiency and enhance customer experience

KEY CONCERNS

• A major part of the issue is the offer for sale which would go to selling share
• The company carries operations from a single warehouse located in Southern India which could be a geographical limitation
• The company has incurred losses for FY21 for Rs 5 Crores and revenues also declined.
• Covid-19 pandemic has impacted the company and it might continue to impact future
• Dependency on the third party for the major operational part such as transportation and manufacturing

तेज़ी से बढ़ती हुई मुद्रास्फीति के बीच सोने और चांदी के भाव में ऊपरी स्तरों पर बिकवाली का दबाव बना हुआ है।  सोने के भाव के लिए पिछला सप्ताह पांच महीनों में सबसे मंदी वाला साबित हुआ है। मुद्रास्फीति को नियंत्रित करने के लिए अमेरिकी फेडरल रिजर्व बढ़ती मुद्रास्फीति को रोकने की उम्मीद से अधिक बांड टेपरिंग और ब्याज दरों में तेजी से बढ़ोतरी करेगा। पिछले सप्ताह रिज़र्व बैंक ऑफ़ न्यूज़ीलैण्ड ने भी ब्याज दरों में बढ़ोतरी की है। और प्रमुख केंद्रीय बैंक द्वारा भी मुद्रास्फीति नियंत्रण के लिए कदम उठाने की सम्भावना बढ़ने लगी है जिसके कारण सोने और चांदी के भाव में बिकवाली का दबाव बना है। कच्चे तेल की बढ़ती कीमतों को कम करने के लिए भारत, अमेरिका, जापान और चीन द्वारा अपने तेल भंडार से कच्चे तेल की आपूर्ति बढ़ाने पर सहमत हुए है। जिसका असर कच्चे तेल के भाव में पिछले सप्ताह आई गिरावट पर दिखा है जो कीमती धातुओं में दबाव बना रहा है।  इन अटकलों के बीच के अमेरिकी फेड बांड टेपरिंग को 15 बिलियन से बढ़ा कर 30 बिलियन तक कर सकता है और ब्याज दरों में वृद्धि अनुमान से पहले हो सकती है, सोने और चांदी के भाव ऊपरी स्तरों से टूट गए। हालांकि, यूरोप में  कोवीड -19 की चौथी लहर आने की खबर और कोरोना के नए संस्करण से सोने के भाव में निचले स्तरों पर सपोर्ट रहा है। घरेलु वायदा सोने में पिछले सप्ताह ₹1600 प्रति दस ग्राम की गिरावट देखी गई जबकि सप्ताह के अंत तक कीमतों में निचले स्तरों से सुधार हुआ और भाव ₹48100 प्रति दस ग्राम के करीब रहे। चांदी के भाव पिछले सप्ताह में ₹3200 तक टूटे और भाव ₹63400 प्रति किलो पर रहे।

इस सप्ताह मंगलवार को अमेरिकी फेड चेयर जेरोम पॉवेल का भाषण, बुधवार को एडीपी नॉन फॉर्म एम्प्लॉयमेंट चेंज, आइएसएम मैन्युफैक्चरिंग पीएमआई, गुरुवार को ओपेक-गैर ओपेक देशो की बैठक और शुक्रवार को पैरोल के आंकड़े प्रमुख है।

तकनीकी विश्लेषण

इस सप्ताह सोने और चांदी के भाव में अस्थिरता के साथ दबाव रह सकता है। दिसंबर वायदा सोने में 46800 रुपए पर सपोर्ट और 49000 रुपए पर प्रतिरोध है। चांदी में ₹61800 पर सपोर्ट और ₹65000 पर प्रतिरोध है।

सोयाबीन दिसंबर वायदा में पिछले सप्ताह 10 प्रतिशत का उछाल दर्ज किया गया और कीमते 6100 रुपये प्रति क्विंटल तक के स्तरों पर पहुंच गई है। सोयाबीन की फसल आने के बाद इसकी आपूर्ति कम रही जिसके कारण कीमतों में अच्छी तेज़ी देखि गई है। अमेरिकी सोयाबीन में भी पिछले सप्ताह तेज़ी रही और कीमतों में 5 प्रतिशत तक हुई है यूनाइटेड स्टेट्स डिपार्टमेंट ऑफ़ एग्रीकल्चर (यूएसडीए ) की नवंबर रिपोर्ट के मुताबिक साल 2021-22 के लिए यू.एस. सोयाबीन का उत्पादन कम रहेगा। सोयाबीन का उत्पादन 4.42 अरब बुशेल रहने का अनुमान है, जो कम यील्ड के कारण 23 मिलियन घटा है। लेकिन इसका वैश्विक आयात कम होने रहने के कारण स्टॉक में बढ़ोतरी रहने का अनुमान है। वैश्विक सोयाबीन का उत्पादन 1.1 मिलियन टन घटकर 384 मिलियन हो गया है। संयुक्त राज्य अमेरिका और अर्जेंटीना में जो उत्पादन की कमी आई है वह भारतीय उत्पादन से बराबर हुआ है। ग्लोबल सोयाबीन निर्यात 1 मिलियन टन घट कर 172.1 मिलियन टन रह गया है। चीन का आयात 1.0 मिलियन टन घट कर 100 मिलियन टन रह गया है। घरेलु बाजार में सोयाबीन की कीमते कम रहने के कारण मंडियों में आपूर्ति कम रही है। चीन में नेगेटिव मार्जिन और पॉवर कमी के कारण उत्पादन कम रहा जो आयात में कमी का एक कारण रहा है, लेकिन सामान्य होती हुई स्थिति से इसका आयात बढ़ने के आसार है। ब्राज़ील में सूखा मौसम के बीच सोयाबीन की सोइंग होने पर उत्पादन कम रहने की सम्भावना भी है। जिससे सोयाबीन के भाव में वैश्विक स्तर पर तेज़ी देखने को मिल रही है।

तकनिकी विश्लेषण

एनसीडीईएक्स दिसंबर वायदा सोयाबीन में तेज़ी रहने की सम्भावन है। इसमें ₹5600 - ₹5300 रुपये पर सपोर्ट है और ₹6300 - ₹6900 पर रेजिस्टेंस है।

Rating SUBSCRIBE

Issue Offer

Issue Opens on Nov 15, 2021Issue Close on Nov 17, 2021Total IPO size (cr)1,023.47Fresh issue150.00Offer For Sale (cr)873.47Price Band (INR)635-662Market Lot22Face Value (INR)2Retail Allocation35%Listing On NSE, BSE

Objects of the issue

⮚ For Repayment/prepayment of liabilities ⮚ For Funding of the capital expenditure

Issue Break-up (%)

QIB Portion50NIB Portion15Retail Portion35

Shareholding (No. of Shares)

Pre Issue5,09,40,420Post Issue5,32,06,281

Indicative Timetable

Finalization of Basis of  Allotment23-11-2021Refunds/Unblocking ASBA Fund24-11-2021Credit of equity shares to  DP A/c25-11-2021Trading commences26-11-2021

About Tarson Products Limited IPO:

Tarsons Products Limited is a Indian labware company engaged in the designing, development, manufacturing and marketing of ‘consumables’,  ‘reusables’ and ‘others’ including benchtop equipment, used in various  laboratories across research organizations, academia institutes,  pharmaceutical companies, Contract Research Organizations (CROs),  Diagnostic companies and hospitals.

Company’s product portfolio is  classified into three key categories which include consumables,  reusables, and others. ‘Consumables’ category includes products such as  centrifuge ware, cryogenic ware, liquid handling, PCR consumables and  petri dish, transfer pipettes 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. Company is one of the  leading Indian company in terms of revenue in the plastic labware market in India

⮚ Company currently operates through their five manufacturing  facilities located in West Bengal. These facilities are vertically  integrated and equipped with automated support systems that help  them to maintain quality, increase productivity, and reduce costs.

⮚ They have over 36 years of experience in life sciences through  which they gained expertise in the production of a wide range of  labware products.

⮚ Company have received CE-IVD certificate for their products such  as micro and macro tips, cryo vials and centrifuge tubes.

⮚ Company supply their products to over 40 countries across both  developed and emerging markets through a blend of branded and  ODM sales.

⮚ They supply products to life sciences industry under the brand label‚ TARSONS WITH THE WORDS -TRUST DELIVEREDTM.

Outlook & Company Valuation:

The company has shown stable growth in  revenue in the last 3 years where we saw a minor dip in FY20 on the  back of COVID-19. Revenue of the company has grown from Rs 184.7  cr to Rs 234.3 cr over the period of FY19 to FY21; during the same  period profit has grown from Rs 39 cr in FY19 to Rs 68.9 cr in FY21.

The margins of the company have grown significantly on the back of  declining debt. Tarson products limited is a company with great brand  awareness and high-quality goods, India’s leading life sciences supplier.

The company aims to be debt fee post the IPO and is planning for  CAPEX which will further increase the revenues. The IPO is arriving at  a PE of 34x on annualized Q1FY22 EPS of Rs. 4.88 which seems to be  attractively priced. Thus we assign a "SUBSCRIBE" rating for listing  gain and long term.

KEY MANAGERIAL PERSONNEL

⮚ Sanjive Sehgal is the Chairman and Managing Director of the Company. He holds a bachelor’s degree in science  from Xavier College, Calcutta. He has over 30 years of experience in this Company.

⮚ Rohan Sehgal is the Whole-Time Director of the Company. He holds a bachelor’s degree in science (management)  from the University of Manchester. He has over 7 years of experience in this Company.

⮚ Gaurav Podar is the Non-Executive Nominee Director of the Company. He has over 10 years of experience in the  finance industry. He has been Non-Executive Nominee Director in this Company from June 10, 2019.

⮚ Viresh Oberai is the Independent Non-Executive Director of the Company. He holds a bachelor’s degree in history  from the University of Delhi; He has over 22 years of experience with Tata Steel.

⮚ Sucharita Basu De is the Independent Director of the Company. She has over 20 years of experience in commercial  and corporate agreements, capital markets and real estate.

⮚ Girish Vanvari is the Independent Director of the Company. He holds a bachelor’s degree in commerce from the  University of Bombay and is a member of the Institute of Chartered Accountants of India.

⮚ Piyush Khater is the Company Secretary and Compliance Officer of the Company. He holds a bachelor’s degree in  commerce with specialisation in accounting & finance from St. Xavier’s College, University of Calcutta. He has over  4 years of experience and has previously worked with Ashok Kumar Duggar & Associates. In his last position, he  was assistant manager with Consolidated Consultancy Services Private Limited. Since he joined our Company on  July 28, 2021, he did not receive any remuneration during the Financial Year 2021.

⮚ Santosh Agarwal is the Chief Financial Officer of the Company. He holds a bachelor’s degree in commerce from the  University of Calcutta. He has over 20 years of experience and has previously worked with Polar Fans, Genpact,  ICA group and Gruas Jaso Group. In his last position, he was the chief financial officer and company secretary of  Jaso India. He joined the Company on October 1, 2019

COMPETITIVE STRENGTHS

⮚ Leading Indian supplier to life sciences sector with strong brand recognition and quality products.

⮚ Company provide a diverse range of labware products across varied customer segments

⮚ They operate in an industry which has a large addressable market with long-standing relationships with key end  customers

⮚ Well-equipped and automated manufacturing facilities

⮚ Wide geographic reach through their pan India sales and distribution network

⮚ Experienced Promoter backed by strong management team

KEY CONCERNS

⮚ All manufacturing plants are based in West Bengal (Geographical risk).

⮚ Over 85% of the IPO proceeds would go to selling shareholders of the company.

⮚ Company imports over 75% of its raw materials. Any delay, interruption or reduction in supply of raw materials to  manufacture its products can adversely affect its business.

⮚ Company’s manufacturing facilities are concentrated in West Bengal. Such geographical concentration can pose  risk to its business.

⮚ In case of plastic products manufactured by the company gets banned in India or any markets where the company  exports its products can have a material and adverse effect on its business.

COMPARISON WITH LISTED INDUSTRY PEERS

As per the RHP document, there are no listed entities whose business portfolio is comparable with that of Tarsons’s business and hence we cannot conclude whether the issue price is underpriced or overpriced. However, the IPO is arriving at a PE of 34x on annualized Q1FY22 EPS of Rs. 4.88 which seems to be attractively priced.

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 1.92 2.00 1.92Other Equity 2,441.46 1,973.69 1,350.81Net Worth 2,443.38 1,975.69 1,352.73Total Borrowings 334.54 358.95 645.13Revenue from Operations 2,289.11 1,759.02 1,787.48EBITDA 1,034.38 692.54 716.67Profit Before Tax 924.34 531.33 558.25Net Profit for the year 688.70 405.31 389.58