Valiant Laboratories' IPO, valued at Rs 152.46 crores, was a book-built issue consisting solely of 1.09 crore fresh shares. Bidding for the IPO commenced on September 27, 2023, closing on October 3, 2023. Allotment results were announced on Thursday, October 5, 2023. The company's shares debuted on both the BSE and NSE on October 6, 2023
Valiant Laboratories has established its IPO price range at ₹133 to ₹140 per share, with a minimum lot size of 105 shares per application. Retail investors are required to invest a minimum of ₹14,700. For sNII, the minimum investment is set at 14 lots (1,470 shares), totaling ₹205,800, while for bNII, it stands at 69 lots (7,245 shares), amounting to ₹1,014,300. These specifications ensure equitable participation in the IPO, catering to various investor categories with distinct investment thresholds.
Unistone Capital Pvt Ltd has been appointed as the book running lead manager overseeing the Valiant Laboratories IPO, while Link Intime India Private Ltd has been entrusted with the role of registrar for the issuance.
OBJECTIVE OF IPO
1. Investment in our wholly-owned subsidiary, Valiant Advanced Sciences Private Limited (“VASPL”) for part-financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for speciality chemicals (ketene and diketene derivatives products) at Saykha Industrial Area, Bharuch, Bharuch, Gujarat.
2. Investment in VASPL for funding its working capital requirements
3. General corporate purposes
Valliant laboratories IPO Details |
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IPO Date | September 27, 2023 to October 03, 2023 | ||||||||||
Listing Date | October 06, 2023 | ||||||||||
Face Value | 10 | ||||||||||
Price | 133-140 | ||||||||||
Lot Size | 105 shares | ||||||||||
Total Issue Size | 152.46 | ||||||||||
Fresh Issue | 10,890,000 shares (aggregating up to ₹152.46 Cr) | ||||||||||
Offer for Sale | N/A | ||||||||||
Issue Type | Book Built Issue IPO | ||||||||||
Listing At | BSE, NSE | ||||||||||
Share holding pre issue | 32,560,000 | ||||||||||
Share holding post issue | 43,450,000 |
Valliant laboratories IPO Lot Size |
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Application | Lots | Shares | Amount | ||||||||
Retail (Min) | 1 | 105 | ₹14,700 | ||||||||
Retail (Max) | 13 | 1365 | ₹191,100 | ||||||||
S-HNI (Min) | 14 | 1,470 | ₹205,800 | ||||||||
S-HNI (Max) | 68 | 7,140 | ₹999,600 | ||||||||
B-HNI (Min) | 69 | 7,245 | ₹1,014,300 |
Valliant laboratories IPO Timeline (Tentative Schedule) |
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IPO Open Date | Wednesday, September 27, 2023 | ||||||||||
IPO Close Date | Tuesday, October 3, 2023 | ||||||||||
Basis of Allotment | Thursday, October 5, 2023 | ||||||||||
Initiation of Refunds | Friday, October 6, 2023 | ||||||||||
Credit of Shares to Demat | Friday, October 6, 2023 | ||||||||||
Listing Date | Friday, October 6, 2023 | ||||||||||
Cut-off time for UPI mandate confirmation | 5 PM on October 3, 2023 |
Valliant laboratories IPO Reservation |
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Investor Category | Shares Offered | Reservation % | |||||||||
Anchor Investor Shares Offered | 3,266,970 (30.00%) | N/A | |||||||||
QIB Shares Offered | 2,178,030 (20.00%) | N/A | |||||||||
NII (HNI) | 1,633,500 (15.00%) | ||||||||||
bNII > ₹10L | 1,088,999 (10.00%) | 740 | |||||||||
sNII < ₹10L | 544,501 (5.00%) | 370 | |||||||||
Retail Shares Offered | 3,811,500 (35.00%) | 36,300 | |||||||||
Total Shares Offered | 10,890,000 (100%) |
Valliant laboratories IPO Promoter Holding |
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Share Holding Pre Issue | 100% | ||||||||||
Share Holding Post Issue | 74.94% |
Valliant laboratories IPO Subscription Status |
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Investor Category | Shares Offered | Shares Bid For | No oF Times Subscribed |
An Active Pharmaceutical Ingredient (“API”) / Bulk Drug manufacturing company having focus on manufacturing of Paracetamol. Bulk drugs/Active Pharmaceutical Ingredients (API) serve as raw materials for manufacturing finished dosage forms or formulations.
The company was formed in year 1980 as a partnership firm under the Indian Partnership Act, 1932 under the name and style of “M/s. Bharat Chemicals” and, commenced manufacturing of Paracetamol by late 1982. In August 2021, the partnership firm was converted into a public ltd co.
Paracetamol was initially approved by the U.S. Food and Drug Administration (“US FDA”) in 1951 and is available in a variety of forms including syrup form, regular tablets, effervescent tablets, injection, suppository, and other forms.
The pharmaceutical API industry in India is ranked third largest globally in terms of volume, behind China and Italy. 35% of API are exported and the remaining API and intermediaries are sold in the domestic market. India is the largest provider of generic drugs, globally contributing to ~20% in global supply by volume of generics drugs.
The overall API industry in India grew from Rs. 781 billion in Fiscal 2017 to Rs. 1,179 billion in Fiscal 2022 registering a CAGR of 8.5% in rupee terms. The industry is expected to clock a growth rate of 9-11% between Fiscal 2022 and Fiscal 2027, largely driven by growth in API exports.
The paracetamol API industry (Domestic consumption+ exports) grew from Rs. 22 billion in Fiscal 2017 to Rs. 39 billion in Fiscal 2023. The paracetamol API industry is expected to clock a CAGR of 5-7% between fiscal 2023 and fiscal 2027, largely driven by the demand from domestic formulation manufacturers as well as export markets.
RISK FACTORS
Period Ended | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
---|---|---|---|
Reserve of Surplus | 67.93 | 55.18 | 78.082 |
Total Assets | 212.76 | 181.81 | 106.31 |
Total Borrowings | 59.40 | 60.68 | 0.35 |
Fixed Assets | 29.18 | 23.21 | 19.5 |
Cash | 0.456 | 20.1 | 18.937 |
Net Borrowing | 58,94 | 40.5 | -18.56 |
Revenue | 338.77 | 293.47 | 183.78 |
EBITDA | 35.091 | 42.318 | 50.002 |
PAT | 29.00 | 27.50 | 30.59 |
EPS | 8.91 | 9.52 | 10.83 |
Key Performance Indicator |
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KPI | Values | ||||||||||
EPS Pre IPO (Rs.) | 8.91 | ||||||||||
EPS Post IPO (Rs.) | - | ||||||||||
P/E Pre IPO | 15.71 | ||||||||||
P/E Post IPO | - | ||||||||||
ROE | 33.73% | ||||||||||
ROCE | 22.76% | ||||||||||
P/BV | - | ||||||||||
Debt/Equity | 0.59 | ||||||||||
RoNW | 28.86% |
Valliant laboratories Limited IPO Peer Comparison |
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Company Name | EPS | ROCE | ROE | P/E (x) | P/Bv | Debt/Equity | RoNW (%) | ||||
Granules India Ltd | 16.3 | 19.4% | 19.1% | 26.4 | 3.52 | 0.47 | 19.4% | ||||
Jagsonpal Pharmaceuticals Ltd | 9.35 | 25.6% | 19.9% | 30.8 | 4.45 | 0.05 | 25.6% | ||||
Alkyl Amines Chemicals Ltd | 31.1 | 27.9% | 21.5% | 62.5 | 8.32 | 0.08 | 27.9% | ||||
Laxmi Organic Industries Ltd | 3.75 | 11.5% | 9.18% | 67.6 | 4.65 | 0.11 | 11.5% | ||||
Valliant Laboratories Ltd. | 8.91 | 22.76% | 33.73% | 15.71 | - | 0.59 | 28.86% |
Valiant Laboratories Limited
104,Udyog Kshetra,
Mulund Goregaon Link Road,
Mulund West, Mumbai -400080
Phone: +91 2249712001
Email: complianceofficer@valiantlabs.in
Website: https://valiantlabs.in/
Link Intime India Pvt. Ltd.
Address: C - 101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli West,
Mumbai 400 083, Maharashtra, India
Phone: +91-22-4918 6270
Email: valiantlaboratories.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html
Valiant Laboratories, which mainly makes paracetamol and other drugs, saw its sales go up over time, but its profits were up and down. The money it made after all expenses (PAT) and its profit margins (RoCE) were going down too. Looking at how much it made in the financial year 2023, the IPO seems to be priced just right. People who know about investing might want to put their money in for the long run. In the year ending March 31, 2023, Valiant Laboratories made Rs 29 crore in profit with Rs 338.77 crore in sales. However, during that same time, it only made Rs 27.5 crore in profit with Rs 293.47 crore in sales.
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