Valiant Laboratories IPO: All You Need To Know

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Valiant Laboratories IPO

Valiant Laboratories is offering shares to the public from 27 September 2023 to 3 October 2023. Each share costs between ₹143 and ₹140 and has a face value of ₹10. You can buy a minimum of 105 shares for ₹14,700. They plan to list these shares on 9 October 2023. The total value of this offering is ₹152.42 Crores, which includes a fresh issue worth ₹152.42 Crores. 

Valiant Laboratories IPO: Business Overview

Valiant Laboratories was established in 1980, which is an Indian pharmaceutical firm specialised in producing paracetamol.

Manufacturing units are located in Palghar, Maharashtra, spread across 2,000 sq. mts. Of land which has an aggregate annual total installed capacity of 9,000 MT per annum. The company is well equipped with an analytical laboratory and infrastructure for development activities in existing products for their R&D Facility.

Raw materials like Amino Phenol which is used for manufacturing Paracetamol are imported from China and Cambodia. Valiant Laboratories has a total of 86 employees as of April 20, 2023.

Valiant Laboratories Limited IPO: Details

IPO Open and Close DateSep 27, 2023 to Oct 3, 2023
IPO price range₹133 to ₹140 per share
Lot Size105 Shares
IPO size₹152.46Cr
Basis of AllotmentThursday, 5 October 2023
Credit of Shares to DematFriday, 6 October 2023
Listing DateMonday, 9 October 2023

(Source: DRHP)

Valiant Laboratories Limited IPO: Reservations

QIB Shares OfferedNot more than 50% of the Net Offer
NII (HNI) Shares OfferedNot less than 15% of the Net Offer
Retail Shares OfferedNot less than 35% of the Offer

(Source: DRHP)

The minimum investment for retail investors is ₹14,700, the minimum lot size investment for sNII is 14 lots with an investment amounting to ₹205,800, and for bNII, it is 69 Lots amounting to ₹10,14,300.

Valiant Laboratories' book-running lead manager is Unistone Capital Pvt Ltd, while Link Intime India Private Ltd is the registrar for the issue. the share of the variant is expected to be launched on both NSE and BSE with a tentative date of 9 October 2023 which falls on Monday.

The Objective of the Issue:

Net proceeds for the issue will be utilized for the following purposes:

  •   Investment in its 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 specialty chemicals at Saykha Industrial Area, Bharuch, Bharuch, Gujarat (Proposed Facility).
  •  Investment in VASPL for funding its working capital requirements.
  •   General corporate purposes.

Valiant Laboratories Limited IPO: Financial Performance

ParticularsFY23(in Rs Crores)FY22(in Rs Crores)FY21(in Rs Crores)
Total Revenue338.772293.472183.781
Profit/Loss After Tax28.99827.49630.593
Current Assets181.96156.7985.98
Current Liabilities50.5149.4215.88

(Source: DRHP)
A robust increase in Valiant Laboratories’ new investment ventures has brought up its Current Assets by 16% from ₹156.79 Crores in FY 2022 to ₹181.96 Crores in FY 2023.

Revenue of the company has experienced significant growth in domestic sales resulting in a 15.43% growth in Total revenue from ₹293.47 Crores in FY22 to ₹338.77 Crores in FY23. Moreover, net profit increased by 5.46% from ₹27.49 Crores in FY22 to ₹28.99 Crores in FY23 due to a decrease in tax expenses.

Key Performance IndicatorValues
EPS (Rs)8.91
Return on Equity (ROE)33.73%
Debt/Equity0.59

(Source: DRHP)

Valiant Laboratories Limited: Strengths

  •  Leading player in the pharmaceutical ingredient manufacturing industry in India.
  • Valiant has a long track record of profitability and growth.
  •   Proceeds from the funding will be used for laboratory growth.
  •  Valiant has a diversified product portfolio and a strong customer base.
  •  Valiant Laboratories Limited has shifted its focus and now mostly gets its raw materials from Valiant Organics Limited. This move has not only strengthened their teamwork but also made things more cost-effective and sped up deliveries.

Valiant Laboratories Limited: Risks

  • Valiant has high competition in the pharmaceutical ingredient manufacturing industry.
  • The business cycle of the Laboratories is dependent on the overall economic conditions.
  • Foreign exchange fluctuations and changes in government regulations impact the business.
  • The company is dependent on a few customers who contribute a major part of its revenue.

Valiant Laboratories Limited Peer Comparison

Name of the CompanyRevenue (In Crore)PAT (In Crore)Market Capital
Valiant Laboratories Limited338.77228.998NA
Granules India Ltd (C)1,198.88119.68,141.11
Jagsonpal Pharmaceuticals Limited (S)58.015.61,085.12
Alkyl Amines Chemicals Ltd (S)414.5148.6412,097.90
Laxmi Organic Industries Limited (C)737.0224.277,647.29

(As of 31 March 2023)
Valiant Laboratories Limited Grey Market Premium
 The GMP for Valiant Laboratories is not available yet. Information will be soon updated.

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