Valiant Labs IPO fully booked as Day 3 sees rush of retail investors, HNIs

Valiant Laboratories IPO opens for third day of bidding

The public issue of Valiant Laboratories received decent response so far on the third day of bidding on September 29 with all categories of investors participating in the offer, making the IPO fully subscribed. The issue will close on October 3.

Investor have bought 1.66 crore equity shares so far, against an offer size of 76.23 lakh shares, resulting into a 2.18 times subscription, as per data available on the exchanges.

Retail investors provided the maximum support so far, buying 3.12 times the part set aside for them, which is 35 percent, and high networth individuals have subscribed 1.51 times the reserved portion which stands at 15 percent.

Qualified institutional buyers have bid 1.04 times the allotted quota that stands at 50 percent of the total offer.

The public issue was subscribed 71 percent till the September 28.

The Mumbai-based pharma company has opened its public issue on September 27 with the aim to mop up Rs 152.46 crore, of which Rs 45.74 crore has already been raised from investors who participated in the anchor book, a part of qualified institutional buyers.

Also read: 10 things to know before subscribing to Rs 152 cr issue

There were only four investors - Leading Light Fund VCC - The Triumph Fund, Saint Capital Fund, Astorne Captal VCC - Arven, and Negen Undiscovered Value Fund, in the anchor book.

Overall, the IPO consists of only a fresh issuance of shares, which means the entire issue proceeds excluding offer expenses will be received by the company.

Largely the issue proceeds worth Rs 125 crore will be used by Valiant mainly for its subsidiary Valiant Advanced Sciences (VASPL), which is setting up a manufacturing facility for specialty chemicals at Bharuch in Gujarat and its working capital requirements. And the remaining amount will be utilised for general corporate purposes.

The price band for the offer is Rs 133-140 per share.

Promoters Dhanvallabh Ventures LLP, Shantilal Shivji Vora and Santosh Shantilal Vora are the promoters of Valiant Laboratories that focuses on the manufacturing of Paracetamol.

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Dhanvallabh Ventures LLP, which holds 62.5 percent stake in Valiant Labs, is owned by listed entity Valiant Organics with 73.15 percent shareholding.

In the grey market, IPO shares were available at around 10 percent premium over the upper price band, analysts said on anonymity. The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing.

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