Valiant Laboratories IPO Day 2: Check Subscription Status, GMP, Allotment, Other Details Here

Drugmaker, Valiant Laboratories witnessed steady demand on the second day of its Rs 152.46 crore worth initial public offering (IPO) driven by retail investors. The IPO which opened on September 27, will be available for subscriptions till October 3, 2023. The proposed equity shares will be listed on BSE and NSE.

As per NSE data, cumulatively, Valiant IPO received bids of 39,31,410 equity shares at around 12.42 pm, on Thursday, which is 0.52% of the total size of 76,23,030 equity shares.

The portion of retail investors is nearly its full subscription as bags 96% bidding of the reserved 38,11,500 equity shares. Non-Institutional Investors (NII) portion subscribed by 18% of 16,33,500 equity shares allocated. However, Qualified Institutional Buyers (QIBs) have shown dull demand as of now on Day 2.

The 100% book building has a price band of Rs 133 per share to Rs 140 per share at a face value of Rs 10 each. The bid lot size is 105 Equity Shares and in multiples thereof.

On Thursday, the grey market premium (GMP) of the IPO is at Rs 10. As per Investor Gain data, with a price band of 140.00, Valiant Laboratories IPO's estimated listing price is ₹150 (cap price + today's GMP). The expected percentage gain/loss per share is 7.14%.

Unistone Capital is the book-running lead manager of the IPO, while Link Intime India is the registrar of the issue.

After the IPO, the allotment of equity shares is expected to take place on October 5, while refunds and credit of shares to the demat account are expected on October 6th. As per Chittorgarh, accordingly, Valiant Lab will list on October 9.

Valiant Lab is an Active Pharmaceutical Ingredient ("API") / Bulk Drug manufacturing company having focuses on the manufacturing of Paracetamol. Bulk drugs/Active Pharmaceutical Ingredients (API) serve as raw materials for manufacturing finished dosage forms or formulations.

The company's net profit stood at Rs 289.98 million in FY23 versus Rs 274.96 crore in FY22, while revenue from operations stood at Rs 3,339.10 crore higher than Rs 2,915.23 crore in FY22.

Among its key strategies highlighted in the RHP, the company has proposed to establish a greenfield project at Saykha Industrial Area, Bharuch, Gujarat to venture into the speciality chemicals industry by manufacturing ketene and diketene derivative products. Also, Valiant aims to increase its market share in the paracetamol API industry and the focus will remain on acquiring new customers and retaining existing customers.

Valiant plans to utilise the proceeds from the IPO to invest in VASPL to partly finance its capital expenditure requirements for setting up the proposed facility in Bharuch. Also, the company is to use a portion of its proceeds for investment in VASPL for funding its working capital requirements, and general corporate purposes.

With backward integration, the company believes in having greater control over the manufacturing process, and quality standards and benefit from cost efficiencies. As a result, it expects to fulfil the customers' needs promptly, increase our sales per customer and improve our working capital and supply chain processes.