Valiant Laboratories IPO opens Wednesday. What GMP signals ahead of subscription?
The current GMP of Valiant Laboratories is Rs 0 in the unlisted market.
The offer, which is priced at Rs 133-140 apiece, is completely a fresh equity issue of Rs 1.08 crore shares. Investors can bid for a minimum of 105 shares in one lot and in multiples thereof.
About 50% of the offer is set aside for qualified institutional buyers, 15% is reserved for non-institutional investors and 35% for retail investors.
Net proceeds from the issue will be utilised towards part-financing its capex, funding working capital requirements and other general corporate purposes.
Valiant Labs is an active pharmaceutical ingredient (API)/bulk drug manufacturing company, with a focus on producing Paracetamol.
APIs serve as raw materials for manufacturing finished dosage forms or formulations.
The pharmaceutical API industry in India is ranked third-largest globally in terms of volume. It is expected to clock a CAGR of 5-7% between fiscal 2023 and 2027, largely driven by the demand from domestic formulation manufacturers as well as export markets.
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 (WHO).
The company's revenues grew 16% to Rs 339 crore in the fiscal year 2023, while net profit was marginally higher at Rs 28.9 crore, compared with Rs 27.4 crore a year ago.
Unistone Capital is the sole book running lead manager to the issue and Link Intime India is the registrar.
Valiant Labs has set T+3 timeline for the listing of shares, which will be October 9.
