Valiant Laboratories, an India-based pharmaceutical company, opened its initial public offering (IPO) for subscription on Wednesday. The IPO, valued at ₹152.46 crores, will remain open until October 3rd.
The firm, specializing in the manufacturing of Paracetamol as an Active Pharmaceutical Ingredient (API), owns a manufacturing facility in Maharashtra, equipped with an internal research and development (R&D) infrastructure. The R&D facility is furnished with an analytical laboratory and infrastructure for product development activities.
The IPO comprises a fresh issue of 10,890,000 equity shares, with no offer for sale component. The price band for the IPO has been fixed at ₹133 to ₹140 per equity share. Investors can place bids for a minimum of 105 equity shares, and in multiples of 105 equity shares thereafter.
The allocation of shares for the public issue is as follows: not more than 50% for qualified institutional buyers (QIB), not less than 15% for non-institutional investors (NII), and not less than 35% for retail investors.
Valiant Laboratories plans to utilize the net proceeds from the IPO to fund its objectives. These include investment in Valiant Advanced Sciences Private Limited (VASPL), funding working capital requirements, and meeting general corporate purposes.
The company's listed peers include Granules India Ltd, Jagsonpal Pharmaceuticals Ltd, Alkyl Amines Chemicals Ltd, and Laxmi Organic Industries Ltd. Unistone Capital Private Ltd is serving as the book-running lead manager for the Valiant IPO, while Link Intime India Private Ltd is the registrar.
However, the grey market premium (GMP) for Valiant Laboratories shares is currently zero, indicating no premium or discount on the shares in the grey market.
Despite this new opportunity to invest in Valiant Laboratories, experts' opinions on the IPO are not overwhelmingly positive. Dilip Davda, contributing editor at Chittorgarh.com, noted that the company’s financials, such as PAT and RoCE margins, have been on a declining trend. He suggested that based on FY23 earnings, the issue appears to be fully priced, and investors may consider long-term investments for potential rewards.
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