Valiant Laboratories Files Draft Papers With Sebi To Mop-Up Funds Via 'IPO'

Pharmaceutical ingredient manufacturing firm Valiant Laboratories has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO is an entirely fresh issuance of 1.15 crore equity shares with no offer-for-sale (OFS) component, according to the draft red herring prospectus (DRHP) filed with Sebi on Thursday.

Proceeds of the issue will be utilised to set-up a manufacturing facility for speciality chemicals in Gujarat through its subsidiary -- Valiant Advanced Sciences Private Ltd (VASPL) and to meet working capital requirements of the subsidiary company. Valiant Laboratories is an Active Pharmaceutical Ingredient (API) or bulk drug manufacturing company with its focus on manufacturing Paracetamol, which is used in the treatment of headache, muscle ache, arthritis, back ache, toothache, cold and fever.

The paracetamol API industry grew from Rs 2,200 crore in fiscal 2017 to Rs 3,900 crore in fiscal 2023 and going forward the industry is expected to clock a CAGR (compound annual growth rate) of 5-7 per cent between fiscal 2023 and fiscal 2027, largely driven by the demand from domestic formulation manufacturers as well as export markets. Unistone Capital Private Limited is the sole book running lead manager to the issue.

(PTI)