Many people might not be familiar with Valiant Laboratories but currently, it is one of the leading pharmaceutical ingredient manufacturing companies in the country with a core focus in manufacturing Paracetamol. According to the company’s DRHP filed with SEBI, the active pharmaceutical ingredient or API industry witnessed growth from Rs. 781 billion to Rs. 1,179 billion from FY 2017 to 2022 i.e. an 8.5% CAGR. It is expected to grow further at an exponential rate in the year to come. Therefore if you are looking forward to leveraging the industry growth, you can consider investing in the Valiant Laboratories IPO. Read along to know more about the same.
Table of Content
IPO Details
Listed below are the details of the Valiant Laboratories IPO.
| IPO Open Date | September 27, 2023 |
| IPO Close Date | October 3, 2023 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs. 10 per share |
| Price Band | ₹133 to ₹140 per share |
| Minimum Lot Size | 105 Shares |
| Total Issue Size | 10,890,000 shares |
| Fresh Issue | 10,890,000 shares |
| Offer for Sale | 10,890,000 shares |
About the Company
Valiant Laboratories Ltd., established in 1980, is one of the leading active pharmaceutical ingredient (API) manufacturing companies in the country. The API and bulk drug version of Paracetamol have multiple applications in the treatment of common cold, fever, headache, backache and arthritis.
It has its major manufacturing units situated in over 2,000 square metres of land in Maharashtra, Palghar with an installed capacity of 9,000 MT on an annual basis. The company also has a dedicated research and development facility for developing and enhancing its existing products.
The company is now looking forward to raising capital in the form of equity to enhance its overall operational capabilities and for its upcoming ventures.
Additional Read: Cut-Off Price in IPO Application
IPO Timeline
Here is the timeline of Valiant Laboratories IPO:
| IPO Open Date | Wednesday, September 27, 2023 |
| IPO Close Date | Tuesday, October 3, 2023 |
| Cut-off Time for UPI Mandate confirmation | 5 PM on October 3, 2023 |
| Basis of Allotment | Thursday, October 5, 2023 |
| Initiation of Refunds | Friday, October 6, 2023 |
| Credit of Shares to Accounts | Friday, October 6, 2023 |
| Listing Date | Monday, October 9, 2023 |
Company Financials
Here is the financial summary of Valiant Laboratories Ltd:
| Particulars | For the Financial Year Ending (Rs. Millions) Except EPS | ||
| March 31, 2023 | March 31, 2022 | March 31, 2021 | |
| Total Assets | 2,127.58 | 1,818.12 | 1,063.14 |
| Total Liabilities | 1,122.67 | 1,103.52 | 177.32 |
| Total Expenses | 3,006.36 | 2,517.68 | 1,367.59 |
| Total Revenue | 3,387.72 | 2,934.72 | 1,837.81 |
| Profit/Loss After Tax | 289.98 | 274.96 | 305.93 |
| EBITDA | 350.91 | 423.18 | 500.02 |
| EPS (Basic and Diluted) | 8.91 | 9.52 | 10.83 |
Additional Read: How To Apply For An IPO?
Strengths of the Company
Valiant Laboratories has some strong areas which make the IPO worth investing in, here are some of the strengths of the company:
- The promoter and non-executive director of the company is an industry expert and has more than 45 years of experience in the chemical and pharmaceutical industry.
- Valiant Laboratories has delivered a strong financial performance mainly reflected in its balance sheet with a high return on capital employed, shorter debtor holding period, and positive operating cash flows. This enables it to fund growth opportunities and strategic initiatives and helps in managing uncertain fluctuations in cash flow.
- The company has been able to reduce its dependency on importing raw materials from countries like Cambodia and China.
- The strategic location of the manufacturing facilities ensures easy access to port facilities, providing an added logistical cost advantage in its export activities.
Additional Read: How Can You Analyse An IPO?
Risks Involved
Listed below are some of the risk factors associated with the company’s business.
- Valiant Laboratories is subjected to stringent quality checks and restrictions. There are regular inspections and audits conducted; therefore any failure to comply or flaws can negatively impact its overall business and reputation.
- The company does not have any long-term agreements with its raw material suppliers. Therefore, if it is unable to procure raw materials in the future, it could negatively impact the overall profitability of its business.
- It is a single-product manufacturing company; therefore any changes in the Paracetamol API industry can directly impact the revenue, profitability and financials of the company.
Summary
Valiant Laboratories will launch its IPO on 27 September 2023 with the aim to issue 1.09 crore shares. The face value of the shares is Rs. 10 per share. The core objective behind this fundraiser is mainly to enhance the operational efficiency and fund its upcoming ventures.
This IPO will remain open till October 3, 2023. If you are planning to invest in this IPO, make sure to go through its DRHP carefully to make an informed decision.
Frequently Asked Questions
The anchor investor allotment begins on September 26, 2023.
The opening date for the Valiant Laboratories IPO is 27th September 2023.
The company has not yet announced the price range of its IPO.
Valiant Laboratories will get itself listed on Monday, October 9, 2023.
