Valiant Lab IPO: 10 things to know before subscribing to Rs 152 cr issue

Valiant Laboratories is a pharmaceutical ingredient manufacturing company focused on manufacturing paracetamol

Valiant Laboratories’ Rs 152.4 crore IPO will open for subscription on September 27. The offer consists of only a fresh issue of 1.09 crore shares. The paracetamol manufacturer will use the proceeds to set up a manufacturing facility for speciality chemicals in Gujarat and fund its subsidiary VASPL’s working capital requirements.

Here are 10 key things to know before subscribing to the offer:

1) IPO Dates

The IPO will open for subscription on September 27 and will close on October 3.

2) Price Band

The price band for the issue has been fixed at Rs 133-140 per share.

3) Offer Details

Valiant Laboratories plans to raise Rs 152.4 crore via IPO. The public offer consists of only a fresh issue of 1.09 crore shares. The company’s anchor book opened for subscription on September 26.

4) Objectives of Issue

Valiant Laboratories will use the proceeds to invest in its wholly-owned subsidiary, Valiant Advanced Sciences Private Limited (VASPL), for part-financing its capital expenditure requirements in setting up a manufacturing facility for speciality chemicals (ketene and diketene derivatives products) at Saykha Industrial Area in Gujarat. The company will also invest in VASPL to fund its working capital requirements and general corporate purposes.

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5) Lot Size

Investors can bid for a minimum of 105 equity shares and multiples of 105 after that. Hence the minimum investment by retail investors would be Rs 13,965 (105 x Rs 133 (lower price band). At the upper end, the bidding amount will increase to Rs 14,700.

6) Company Profile

Valiant Laboratories is a pharmaceutical ingredient manufacturing company focused on manufacturing paracetamol. The company’s manufacturing plant is situated in Palghar, Maharashtra.

7) Financials

Valiant Laboratories' net profit rose 5.5 percent to Rs 29 crore for the year ended March 2023 from Rs 27.5 crore in the year-ago period. The revenue from operations grew by 14.5 percent to Rs 333.9 crore from Rs 291.5 crore during the same period.

8) Merchant Bankers

The book-running lead manager is Unistone Capital Pvt Ltd while Link Intime India Private Ltd is the registrar for the issue.

9) Promoters

The company has three promoters. Dhanvallabh Ventures LLP holds a 62.5 percent stake while Shantilal Shivji Vora and Santosh Shantilal Vora hold a 10.01 percent stake each in the company.

10) Listing Date

Valiant Laboratories shares will be listed on the BSE and the NSE on October 9 in the T+3 timeline instead of T+6.