Valliant laboratories IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details

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

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

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)

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

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

Share Holding Pre Issue 100%
Share Holding Post Issue 74.94%

Valliant laboratories IPO Subscription Status

Investor Category Shares Offered Shares Bid For No oF Times Subscribed

About Valliant laboratories Limited

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

  1. Manufactures only Paracetamol. With a single manufacturing facility having strict standardization and regulations.
  2. High Dependency on suppliers. Top 10 Suppliers hold 99% of the raw material supplies, majorly centralized in the western Region. Similarly, the company is highly dependent on few customers centered majorly in the western parts. The top 10 customers holds 42% of the revenue.
  3. Company don’t own any registered trademark or tradename which can affect the company in the case of breach.
  4. The pharmaceutical industry is intensely competitive and inability to compete effectively may adversely affect.
  5. The manufacturing unit and offices are on lease. R&D play a crucial role, any delay in these activities can hamper the company’s growth.
  6. The company is not able to fully utilize the capacity of the plant. In FY23 it could utilize only 67% of the available capacity.
  7. Group Companies are authorized to carry on similar lines of business and there can be no assurance that it will not face competition from such Group Companies in the future.

Valliant laboratories Limited Financial Information (Restated Consolidated)

Amount in (Rs. Crore)

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

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

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%
Valliant laboratories Limited Contact Details

Valiant Laboratories Limited
104,Udyog Kshetra,
Mulund Goregaon Link Road,
Mulund West, Mumbai -400080
Phone: +91 2249712001
Email: complianceofficer@valiantlabs.in
Websitehttps://valiantlabs.in/

Valliant laboratories IPO Registrar and Lead Manager(s)

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
Websitehttps://linkintime.co.in/initial_offer/public-issues.html

Valliant laboratories IPO Review

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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