The company Valiant Laboratories Limited is coming up with an IPO of INR 152.46 crores. The offer consists of a fresh issue of equity shares at a price band of INR 133-140 per share.The company intends to utilise the raised funds towards investment in its wholly owned subsidiary for setting up a new manufacturing facility and to meet its working capital requirements.
Valiant Laboratories Limited IPO – Important Details
| Valiant Laboratories IPO Date | September 27, 2023 to October 3, 2023 |
| Valiant Laboratories IPO Listing Date | October 9, 2023 |
| Valiant Laboratories IPO Price | INR 133-140 per share |
| Valiant Laboratories IPO Lot Size | 105 Shares |
| Valiant Laboratories IPO Total Issue Size | INR 152.46crores |
| Valiant Laboratories IPO Basis of Allotment | October 5, 2023 |
| Valiant Laboratories IPO Initiation of Refunds | October 6, 2023 |
| Valiant Laboratories IPO Credit of Shares to Demat | October 6, 2023 |
| Valiant Laboratories IPO Issue Type | Book Built Issue IPO |
| Valiant Laboratories IPO Listing At | BSE,NSE |
Valiant Laboratories IPO – Company Profile
The company is an Active Pharmaceutical Ingredient (“API”) / Bulk Drug manufacturing company having focus on manufacturing Paracetamol. Bulk drugs/ API serve as raw materials for manufacturing finished dosage forms or formulations.
Paracetamol is one of the most commonly taken analgesics worldwide and is recommended as the first-line therapy in pain conditions by the World Health Organization. Paracetamol has several applications such as usage in treatment of headaches, muscle aches, arthritis, back aches, toothaches, cold and fever. The company manufactures paracetamol in various grades.
The company , through its wholly owned subsidiary, Valiant Advanced Sciences Private Limited intends to establish a greenfield project at Saykha Industrial Area, Bharuch, Gujarat which shall venture into manufacture of speciality chemicals such as ketene and diketene derivative products.
Valiant Laboratories Limited IPO Objective
Valiant Laboratories Limited’s IPO aims to invest INR 80 crores in its subsidiary for a specialty chemicals manufacturing facility and allocate ₹45 crores for the subsidiary’s working capital needs for expected Q4 2024 operations.
- Investment in the company’s wholly owned subsidiary for setting up a new unit: The company plans to invest in Valiant Advanced Sciences Private Limited (VASPL), its wholly owned subsidiary for part financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for speciality chemicals. The company plans to utilise INR 80 crores from the net proceeds of the issue for the said purpose.
- IInvestment in the company’s wholly owned subsidiary for funding its working capital requirements: The new unit is expected to commence commercial operations in the last quarter of fiscal 2024. In order to support the proposed speciality chemicals industry, VASPL would require funding for its working capital requirements. Hence the company proposed to utilize ₹ 45 crore from the net proceeds towards investment in VASPL for funding its working capital requirements.
Valiant Laboratories IPO Risks And Challenges
Valiant Laboratories faces risks due to its sole focus on paracetamol API, reliance on a few suppliers for raw materials, and fierce competition in the pharmaceutical sector, which could impact revenue, financials, and profitability.
- Single product- The company is a single product manufacturing company and any changes to the paracetamol API industry or the product demand will adversely affect the revenues, financials and profitability.
- Limited Suppliers: The company as on 31.03.2023, was dependent on 3 suppliers concentrated in the western region of India for almost 85% of its raw material requirement. Dependence on few suppliers for raw materials may require the company to procure them from other suppliers at higher cost and cause operational interruptions.
- Competition: The pharmaceutical industry is intensely competitive and the company’s inability to compete effectively may adversely affect the business, results of operations and financial condition and cash flows.
Valiant Laboratories Limited IPO Peer Comparison
Valiant Laboratories Limited shows moderate revenue of ₹3,339.10 million with a P/E ratio not available (NA). Its EPS stands at ₹8.91, RoNW is robust at 28.90%, and NAV per Equity Share is ₹30.8. When compared to peers, Valiant Laboratories demonstrates competitive financials and profitability.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Valiant Laboratories Limited | 3,339.10 | 10 | NA | 8.91 | 8.91 | 28.90% | 30.8 |
| Granules India Ltd | 45,119.17 | 1 | 15.06 | 21.05 | 21.00 | 18.22% | 115.52 |
| Jagsonpal Pharmaceuticals Limited | 2,367.14 | 5 | 41.54 | 10.2 | 10.2 | 16.82% | 6.06 |
| Alkyl Amines Chemicals Ltd | 16,823.36 | 2 | 55.59 | 44.75 | 44.68 | 19.56% | 228.41 |
| Laxmi Organic Industries Limited | 27,966.43 | 2 | 66.07 | 4.70 | 4.67 | 8.83% | 52.89 |
Valiant Laboratories Limited IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in millions) | 1,823.69 | 2,915.23 | 3,339.10 |
| Equity (₹ in millions) | 885.82 | 714.60 | 1,004.90 |
| Expenses (₹ in millions) | 1,367.59 | 2,517.68 | 3,006.36 |
| Profit and Loss After Tax (₹ in millions) | 305.93 | 274.96 | 289.98 |
| RoNW (%) | 34.54% | 38.48% | 28.86% |
| Diluted EPS only (₹) | 10.83 | 9.52 | 8.91 |
| NAV per Equity Share (₹) | 84.36 | 43.89 | 30.82 |
| Total Assets (in millions) | 1,063.14 | 1,818.12 | 2 ,127.58 |
| Total Liabilities (in millions) | 177.32 | 1,103.52 | 1,122.67 |
Valiant Laboratories IPO – Fundamental Analysis
Revenue Growth:
Valiant Laboratories has demonstrated consistent revenue growth, increasing from ₹1,823.69 million in 2021 to ₹3,339.10 million in 2023, indicating positive momentum.
Profitability:
The company’s profitability has been stable, with a profit of ₹289.98 million in 2023. Although it dipped from the previous year, the company maintains reasonable profitability.
Return on Net Worth (RoNW):
The RoNW has experienced fluctuations, falling to 28.86% in 2023. While it’s a strong figure, the decrease is noteworthy.
Earnings Per Share (EPS):
The diluted EPS has shown a decline, reaching ₹8.91 in 2023. This decrease in earnings per share might raise concerns.
Asset and Liability Management:
Total assets have shown consistent growth over the years, reflecting expansion. Total liabilities have also increased but remained manageable.
Summary:
Valiant Laboratories exhibits positive revenue growth and reasonable profitability. However, the fluctuation in RoNW and a decrease in diluted EPS might raise concerns. Prospective investors should conduct a thorough analysis of the IPO and consider market conditions before making investment decisions.
Valiant Laboratories IPO – Industry & Market Potential
India is the largest provider of generics drugs globally contributing to ~20% in global supply by volume of generics drugs.
The pharmaceutical API industry in India is ranked third-largest globally in terms of volume, behind China and Italy – About 35 percent of API and intermediaries produced in India are exported and the remaining API and intermediaries are sold in the domestic market.
In terms of imports, Indian API industry still relies on imports for specific products. High dependence on Chinese imports is a concern for the domestic pharmaceuticals industry.Therefore, the central government has earmarked ~Rs 100 billion for the bulk drug industry, including Rs 30 billion for promotion of bulk drug parks (for next five years)
The overall API industry in India grew from Rs. 781 billion in fiscal 2017 to Rs. 1179 billion in fiscal 2022 registering a CAGR of 8.5%.
Valiant Laboratories Ltd IPO – Type of Offer
Valiant Laboratories Limited intends to launch an initial public offering (IPO) valued at INR 152.46 crores. This offering includes a new issuance of equity shares within a price range of INR 133 to INR 140 per share.
Valiant Laboratories Ltd IPO Offer Size
Valiant Laboratories Limited plans to initiate an IPO valued at INR 152.46 crores, involving a fresh issuance of equity shares priced between INR 133 and INR 140 per share. The company aims to use the proceeds to invest in its wholly owned subsidiary for establishing a new manufacturing facility and addressing working capital needs.
Valiant Laboratories Ltd IPO Allotment Structure
Valiant Laboratories Ltd’s IPO allotment structure complies with SEBI regulations: 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs).
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
How to apply for a Valiant Laboratories Limited IPO ?
To apply for the Valiant Laboratories IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Valiant Laboratories IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for Valiant Laboratories IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Valiant Laboratories IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Valiant Laboratories IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Valiant Laboratories IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Valiant Laboratories IPO:
· Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Valiant Laboratories IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
· NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Valiant Laboratories Limited IPO Offer Registrar
The registrar for the Valiant Laboratories IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor
247 Park, Lal Bahadur Shastri Marg
Vikhroli (West) Mumbai 400083
Tel: +91 22 810 811 4949
Email: [email protected]
Website: www.linkintime.co.in
Valiant Laboratories Limited IPO FAQs
- What is the allotment date of the Valiant Laboratories Limited IPO?
The allotment date of the Valiant Laboratories Limited IPO is 5th October 2023.
- What is the price band of Valiant Laboratories Limited IPO?
The price band of Valiant Laboratories Limited IPO is INR 133 to 140 per share.
- What is the size of the Valiant Laboratories Limited IPO?
Valiant Laboratories Limited intends to launch an initial public offering (IPO) valued at INR 152.46 crores. This offering includes a new issuance of equity shares within a price range of INR 133 to INR 140 per share.
- What is the listing date of the Valiant Laboratories Limited IPO? The listing date of the Valiant Laboratories Limited IPO is 9th October 2023.
