Valiant Laboratories IPO: Strong Demand with 2.17 Times Subscription

The initial public offering of Valiant Laboratories, a pharmaceutical ingredient manufacturing firm, opened on September 27 and has seen remarkable demand. As of the end of the second day of bidding on Friday, September 29, the IPO received 2.17 times consolidated subscription, indicating high investor interest. Let’s delve into the details of this exciting IPO.

Impressive Subscription Numbers

Valiant Laboratories’ IPO garnered a whopping 76,23,030 bids, surpassing the 1,65,77,925 shares offered. This robust response from investors highlights the confidence in the company’s prospects.

Allotment and Listing Date

The allotment of shares for this IPO is scheduled for October 5, 2023. Investors eagerly awaiting their shares won’t have to wait long, as the listing on the stock exchanges is set for October 9.

Grey Market Premium (GMP)

Market observers have noted that unlisted shares of Valiant Laboratories Ltd are currently trading at a premium of Rs 15 in the grey market compared to the issue price. This represents a GMP of about 10.71%, significantly higher than the upper issue price of Rs 140 per share. The grey market premium reflects investor optimism about a potential 10.71% listing gain from the public issue. It’s a clear indication of investors’ willingness to pay a premium for these shares.

Key IPO Details

The IPO, which opened on September 27, will remain open for subscription until October 3. It consists of an entirely fresh issuance of up to 1.08 crore equity shares, with no offer-for-sale component. The price range for the shares is set at Rs 133-140 each. Interested investors can bid for a minimum of 69 shares, with multiples thereof allowed.

The funds raised through this IPO will serve two primary purposes. Firstly, they will be used to establish a manufacturing facility for specialty chemicals in Gujarat through Valiant Laboratories’ subsidiary, Valiant Advanced Sciences Private Ltd. Secondly, the funds will support the working capital requirements of the subsidiary company.

About Valiant Laboratories

Valiant Laboratories is a pharmaceutical ingredient and bulk drug manufacturing company. It specializes in the production of paracetamol, a widely used medication for headaches, muscle aches, arthritis, backache, toothache, cold, and fever.

The IPO is managed by Unistone Capital, and the company’s equity shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Investors and market enthusiasts are eagerly awaiting the listing of Valiant Laboratories, considering the strong demand and positive outlook in the grey market. With the IPO poised for a promising start, it’s a development worth keeping a close eye on.

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