Valiant Laboratories IPO subscribed 2.17 times

Published on Sep 29, 2023 17:21

The initial public offer (IPO) of Valiant Laboratories received bids for 1,65,77,925 shares as against 76,23,030 shares on offer, according to stock exchange data at 17:00 IST on Friday (29 September 2023). The issue was subscribed 2.17 times.

The issue opened for bidding on Wednesday (27 September 2023) and it will close on Tuesday (3 October 2023). The price band of the IPO is fixed at Rs 133-140 per share. An investor can bid for a minimum of 105 equity shares and in multiples thereof.

The IPO comprises fresh issue of 10,890,000 shares, aggregating to Rs 152.46 crore on upper price band.

The objectives for fresh issue includes investment of Rs 80 crore in wholly-owned subsidiary, Valiant Advanced Sciences, for part-financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for speciality chemicals, investment of Rs 15.5 crore in VASPL for funding its working capital requirements and balance amount to be used for general corporate purposes.

The promoters and promoter group hold an aggregate of 3,25,60,000 equity shares, aggregating to 100% of the pre-offer issued and paid-up equity share capital. The post IPO shareholding for the same is expected to be around 74.94%.

Ahead of the IPO, Valiant Laboratories on Tuesday, 26 September 2023, raised Rs 45.73 crore from anchor investors. The board allotted 32.66 lakh shares at Rs 140 each to 4 anchor investors.

Valiant Laboratories is an active pharmaceutical ingredient (API)/Bulk Drug manufacturing company in India having focused on manufacturing Paracetamol. Bulk drugs/APIs serve as raw materials for manufacturing finished dosage forms and formulations.

The company manufactures a single product, i.e., Paracetamol. The drug is one of the commonly taken analgesics worldwide and is recommended as the first-line therapy in pain conditions by the World Health Organization (WHO). The company manufactures Paracetamol in various grades such as IP/BP/EP/USP, as per the pharmacopeia requirements of its customers.

The company reported a net profit of Rs 29 crore and net sales of Rs 333.91 crore for the twelve months ended on 31 March 2023.