Valiant Laboratories LTD IPO - Review, Valuation, Date & Todays GMP

Valiant Laboratories Limited - Complete Overview

Established in 1980, Valiant Laboratories Limited is a pharmaceutical ingredient and bulk drug manufacturing company with a primary focus on producing Paracetamol.

Located in Palghar, Maharashtra, India, its manufacturing facility spans approximately 2,000 square meters and boasts an annual installed capacity of 9,000 metric tons.

Valiant Laboratories Limited also houses an in-house research and development infrastructure, equipped with an analytical laboratory and resources for developmental activities related to existing products.

The company sources Para Amino Phenol, a crucial raw material for Paracetamol production, from China and Cambodia. As of April 30, 2023, it employs 86 individuals.

 

What does the company do? 

Valiant Laboratories Limited specializes in the production of pharmaceutical ingredients and bulk drugs, with a primary focus on the manufacturing of Paracetamol.

 

 

IPO Overview

The Valiant Laboratories Limited IPO date is slated from September 27, 2023, to October 3, 2023. The upcoming IPO is anticipated to be listed on October 9, 2023. 

The company aims to raise Rs. 152.46 Crores through this issue to meet the following objectives. The Valiant Laboratories Limited IPO price falls within the range of Rs. 133 to Rs. 140 per share.

Regarding allocation, 50% of shares have been reserved for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

 

Valiant Laboratories Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	27 September 2023
IPO Closing Date	3 October 2023
IPO Allotment Date	5 October 2023
Refund initiation	6 October 2023
IPO Listing Date	9 October 2023

 

Valiant Laboratories Limited IPO Details 

IPO opening & closing date	27 September to 3 October 2023
Face value	Rs.10 per Share
Issue Price	Rs. 133 to Rs. 140 per Share
Lot Size	105 Shares
Price of 1 lot	Rs. 14,700
Issue Size	10,890,000 Shares (aggregating up to Rs. 152.46 Cr)
Offer for sale	NA
Fresh issue	10,890,000 Shares (aggregating up to Rs. 152.46 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Valiant Laboratories Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	13 lot
Minimum Lot Investment (HNI)	14 lot
Maximum Lot Investment (HNI)	68 lot

 

Valiant Laboratories Limited IPO Reservation

Institutional Share Portion	50%
Non-institutional Share Portion	15%
Retail Share Portion	35%

 

Company Financial

Amount in Crores

Period	FY 21	FY 22	FY 23
Total Assets	106.31	181.81	212.76
Total Revenue	183.78	293.47	338.77
PAT	30.59	27.50	29.00
Net worth	88.58	71.46	100.49
Reserve & Surplus	-	-	-
Total Borrowings	0.35	60.68	59.40

 

Sales Turnover of the Company

(Amount in Million)

Particulars	Sales Turnover of FY 23	Sales Turnover of FY 22	Sales Turnover of FY 21
From sale of manufactured products	3,317.48	2,892.89	1805.51
Other income	21.62	22.34	18.18
Total	3,339.10	2,915.23	1,823.69

 

The contribution of the Top 10 Customers towards the revenue

(Amount in Million)

Period	Revenue from operations	Revenue contribution of the top 10 customers
FY 23	3,339.10	1,422.74
FY 22	2,915.23	1,074.96
FY 21	1,823.69	875.56

 

Bifurcation of our revenue from operations

(Amount in Million)

Particulars	FY 23	FY 22	FY 21
Domestic	3,326.07	2,901.47	1,817.62
Exports	13.04	13.77	6.07
Total	3,339.10	2,915.23	1,823.69

 

Objective of the Issue

The company intends to allocate the Net Proceeds for the following purposes:

• Investment in our wholly-owned subsidiary, Valiant Advanced Sciences Private Limited ("VASPL"), to partially support its capital expenditure for establishing a manufacturing facility dedicated to speciality chemicals (specifically ketene and diketene derivatives products) at Saykha Industrial Area, Bharuch, Bharuch, Gujarat (referred to as the "Proposed Facility").
• Investment in VASPL to meet its working capital needs.
• General corporate objectives.

 

Promoters and Management of Valiant Laboratories Limited

Shantilal Shivji Vora, Santosh Shantilal Vora and Dhanvallabh Ventures LLP are the promoters of the company.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	74.94%

 

Peer Comparison

Below are the listed peers of Valiant Laboratories Limited

Company Name	Revenue from operations (Rs. in Mn)	Diluted EPS (Rs.)	P/E
Valiant Laboratories Limited	3,339.10	8.91	-
Granules India Ltd	45,119.17	21.00	15.06
Jagsonpal Pharmaceuticals Limited	2,367.14	10.2	41.54
Alkyl Amines Chemicals Ltd	16,823.36	44.68	55.59
Laxmi Organic Industries Limited	27,966.43	4.67	66.07

 

IPO's Valuations

Valiant Laboratories Limited's IPO price is set in the range of Rs. 133 to Rs. 140 per share, with an EPS of Rs. 8.91. To evaluate the IPO valuation, consider the upper band of the issue price, where the P/E ratio stands at 15.71.

 

Dividend Policy 

As per the Valiant Laboratories Limited IPO DRHP, the company shows no record of past dividend payments, and there is no assurance of dividends being declared or distributed in the future.

 

IPO's Strengths

• Promoters with extensive experience and a robust management team.
• Impressive financial performance.
• Diminishing reliance on imported raw materials.
• A strategically positioned manufacturing facility.

 

IPO Weaknesses

• Being a single-product manufacturing company, any alterations in the paracetamol API industry or shifts in product demand could have adverse effects on the revenue of the company.
• The company operates solely from a single manufacturing facility situated in Palghar, Maharashtra.
• The company is subject to stringent quality standards, routine inspections, and audits.
• The company is currently in the process of expanding its operations and establishing a customer network in a business sector where it lacks significant prior experience or presence.
• Compliance with government regulations is crucial, and any failure to obtain, maintain, or renew the necessary statutory and regulatory licenses, permits, and approvals may have adverse consequences.
• The company operates in a highly competitive industry.
• Pricing pressures from customers have the potential to impact gross margins, profitability, and the ability to raise prices.
• Reforms within the healthcare industry and uncertainties related to pharmaceutical pricing and reimbursement could negatively affect product pricing and demand.
• The Indian chemical industry holds a relatively small share of the global chemical industry.
• Past instances of incorrect filings with the Registrar of Companies and non-compliance under the Companies Act may result in penalties.

 

 

IPO GMP Today

Valiant Laboratories IPO GMP is not yet available.

 

Conclusion 

Valiant Laboratories Limited operates in a competitive industry but has showcased steady revenue growth. The company's remarkable manufacturing capabilities, coupled with its advanced R&D facility, are strong points in its favour. Investors can consider this IPO, after a thorough evaluation of all aspects to yield optimal results.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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