Valiant Laboratories’ shares are scheduled to debut on the bourses today. And, ahead of its listing Valiant Laboratories’ shares’ GMP rose 14.29%. The IPO was subscribed 29.76 times. The Qualified Institutional Buyers (QIBs) category was subscribed 20.83 times, the portion for non-institutional investors received a 73.64-time subscription, and the Retail Individual Investors (RIIs) quota got subscribed by 16.06 times.
“The IPO was well-received by investors, with a subscription rate of 29.76 times. The current GMP is also favorable, indicating a listing premium of over 15%. Valiant Laboratories’ financial performance has been improving in recent years, and the company plans to expand further. The IPO valuation was also considered fair,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
“However, there are some concerns as it is a single-product manufacturing company. Secondly, it is dependent on a limited number of suppliers as well as customers. Also, there is intense competition in this industry. Investors might get a good listing benefit tomorrow, but they should also be cautious about related risks,” Shivani Nyati added.
Valiant Laboratories IPO opened for public subscription on Wednesday, September 27, 2023, and closed on Tuesday, October 3. The bidding for anchor investors concluded on Tuesday, September 26, wherein the company collected Rs 45.74 Crore from the Anchor investors ahead of the public issue. The price band for its public issue at Rs 133-140 per equity share of face value Rs 10 each. The IPO comprised a fresh issue of 10,890,000 equity shares aggregating up to Rs 152.46 crore. The minimum lot size for the IPO is 105 shares, and the amount of investment required by retail investors was Rs 14,700.
Valiant Laboratories is an Active Pharmaceutical Ingredient and Bulk Drug manufacturing company focusing on manufacturing Paracetamol. The company manufactures Paracetamol in various grades and sizes per customers’ specifications, like powder, fine powder, dense, free flowing, etc. The company has a track record of sustained revenue growth, growing at a CAGR of 35.3% during FY21-23.