BackValiant Laboratories IPO opens today: GMP, issue details, other key things to know. Should you subscribe?
Valiant Laboratories IPO opens today. Bids can be made for a minimum of 105 equity shares and in multiples of 105 equity shares thereafter.
PremiumValiant Laboratories IPO date: Valiant Laboratories IPO is opening for subscription today (Wednesday, September 27) and it will close on Tuesday, October 3.
Valiant Laboratories specialises in manufacturing Paracetamol as an Active Pharmaceutical Ingredient (API) or bulk drug. A manufacturing facility owned by Valiant Laboratories is located in Palghar, Maharashtra, India.
There is an internal research and development (R&D) infrastructure within the company's production facilities in Maharashtra. The company's R&D facility is furnished with an analytical laboratory and infrastructure for product development activities.
Valiant Laboratories is promoted by Shantilal Shivji Vora, Santosh Shantilal Vora and Dhanvallabh Ventures LLP.
("Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!)
Valiant Laboratories IPO details
Valiant Laboratories IPO is worth ₹152.46 crores, and is completely a fresh issue of 10,890,000 equity shares; there is no offer for sale (OFS) component.
The company has fixed the price band at ₹133 to ₹140 per equity share for the proposed initial public offer. Bids can be made for a minimum of 105 equity shares and in multiples of 105 equity shares thereafter.
Valiant Laboratories IPO has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional investors (NII), and not less than 35 per cent of the offer is reserved for retail investors.
According to the red herring prospectus (RHP), listed peers of Valiant Laboratories are Granules India Ltd (with a P/E of 15.06), Jagsonpal Pharmaceuticals Ltd (with a P/E of 41.54), Alkyl Amines Chemicals Ltd (with a P/E of 55.59), Laxmi Organic Industries Ltd (with 66.07).
The company plans to use the net proceeds from the offering to fund its objectives as follows: an investment in Valiant Advanced Sciences Private Limited (VASPL), a wholly owned subsidiary, to partially fund its capital expenditure needs in connection with the establishment of a manufacturing facility for speciality chemicals at Saykha Industrial Area, Bharuch, Bharuch, Gujarat (Proposed Facility); an investment in VASPL to fund its working capital requirements; and to meet general corporate purposes.
Unistone Capital Private Ltd is the book-running lead manager for the Valiant IPO. Link Intime India Private Ltd is the registrar of Valiant Laboratories IPO.
The allocation to anchor investors for Valiant IPO is scheduled to take place today (Tuesday, September 26).
Read more: Valiant Laboratories IPO opens tomorrow: GMP, issue details, 10 key things to know
Valiant Laboratories IPO GMP today: According to market experts, Valiant IPO GMP (grey market premium) is zero today around 8:30 am. This means Valiant Laboratories shares were trading at their issue price of ₹140 with no premium or discount in the grey market.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Should you subscribe?
Experts do not appear upbeat about this IPO.
Dilip Davda, the contributing editor at Chittorgarh.com pointed out that the company is in the business of manufacturing APIs and bulk drugs with a prime focus on widely used paracetamol. However, the company has posted declining trends for its PAT and RoCE margins for the reported periods.
“Based on FY23 earnings, the issue appears fully priced. Investors may park funds for medium to long-term rewards," Davda said.
Read all IPO-related news here
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
