Valiant Laboratories, a pharmaceutical ingredient manufacturing firm, is set to launch its initial public offering (IPO) on September 27. This IPO will consist of a fresh issuance of 1.08 crore equity shares, with no offer-for-sale component, and will conclude on October 3. The shares will be allotted on October 5, with the company’s shares scheduled to be listed on October 9.
Furthermore, bidding for anchor investors will commence on September 26. The primary purpose of this IPO is to raise capital for the establishment of a specialty chemicals manufacturing facility in Gujarat, operated by its subsidiary, Valiant Advanced Sciences Private Ltd. It will also be used to fulfill the working capital requirements of the subsidiary company. The IPO’s total issue size is 5,45,77,464 shares, with allocations of 50% for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors. The minimum bid size is set at 105 shares, with multiples thereof.
Valiant Laboratories IPO Details
| Issue Type | Issue Size | Offer for Sale | Subscription Period | Allotment Date | Listing Date |
|---|---|---|---|---|---|
| Fresh Issue | 1.08 crore equity shares | No | September 27 – October 3 | October 5 | October 9 |
Market observers currently report a grey market premium (GMP) of zero for Valiant Laboratories, indicating that the grey market expects no listing gain from the public issue. It’s worth noting that the GMP of unlisted shares fluctuates based on market sentiment. The “grey market premium” reflects investors’ willingness to pay more than the issue price.
About Valiant Laboratories
Valiant Laboratories specializes in the manufacturing of active pharmaceutical ingredients (APIs) or bulk drugs, with a primary focus on producing paracetamol. Paracetamol is commonly used to treat various conditions such as headaches, muscle aches, arthritis, backaches, toothaches, colds, and fevers.
The paracetamol API industry has witnessed significant growth, increasing from Rs 2,200 crore in fiscal 2017 to Rs 3,900 crore in fiscal 2023. Moving forward, it is anticipated that the industry will maintain a Compound Annual Growth Rate (CAGR) of 5-7% between fiscal 2023 and fiscal 2027, driven by demand from domestic formulation manufacturers and export markets.
The sole book-running lead manager for this IPO is Unistone Capital Pvt. The equity shares of Valiant Laboratories will be listed on both the BSE and NSE.
(With Inputs From PTI)