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Valiant Laboratories plans to raise Rs 152.46 crore through an initial public offering (IPO) and the subscription for the IPO will be open from September 27 to October 3, 2023. The price band is fixed at Rs 133 – Rs 140 per share. The face value is set at Rs 10 per share.
The IPO comprises only fresh issue of shares worth Rs 152.46 crore and the size of one lot is 105 shares.
Company Summary
Valiant Laboratories is an Active Pharmaceutical Ingredient (“API”) and bulk drug manufacturing company having focus on manufacturing of Paracetamol.The company manufactures Paracetamol in various grades, as per the pharmacopeia requirements of the customers.
The company’s manufacturing facility is located at Tarapur Industrial Area, Boisar, Palghar in Maharashtra, that is spread over an aggregate parcel of land admeasuring about 2,000 sq. mts. with an aggregate annual total installed capacity of 9,000 MT per annum.
The company said that it has an in-house R&D infrastructure at its manufacturing facility located at Tarapur Industrial Area, Palghar, Maharashtra and the R&D facility is equipped with analytical laboratory and infrastructure for developmental activities in existing product. The company’s focus on R&D, compliance with regulatory standards, quality systems and continuous process improvement has positioned them as a long-standing supplier to its customers.
Further, the company’s revenue from operations grew at a CAGR of 23.90%, while its profit after tax grew at a CAGR of 26.81% between FY2017 and FY2023. Moreover, the company through its wholly owned subsidiary, Valiant Advanced Sciences Private Limited, intends to establish a greenfield project at Saykha Industrial Area, Bharuch, Gujarat, which shall venture into manufacturing speciality chemicals such as ketene and diketene derivative products. The company believes that the production and supply of speciality chemicals would help them to diversify their customer portfolio and increase its growth prospects.
Company Strengths
- Track record of healthy financial position with emphasis on strong balance sheet and increased profitability.
- Strategically located manufacturing facility resulting in cost and logistics advantage.
- Continued reduction of import of raw materials leading to better coordination, competitive pricing, lowering of transportation costs and reduced delivery transit time.
- Experienced promoters and strong management team with exceptional execution capabilities.
Company Financials
Period Ended | FY23 | FY22 | FY21 |
Total Assets (Rs in crore) | 212.76 | 181.81 | 106.31 |
Total Revenue (Rs in crore) | 338.77 | 293.47 | 183.78 |
Revenue from operations (Rs in crore) | 333.91 | 291.52 | 182.37 |
Operating EBITDA (Rs in crore) | 35.09 | 42.32 | 50 |
Operating EBITDA Margin | 10.51% | 14.52% | 27.42% |
Profit After Tax (Rs in crore) | 28.99 | 27.49 | 30.59 |
PAT Margin | 8.56% | 9.37% | 16.65% |
Return on Equity (ROE) | 33.73% | 34.36% | 48.10% |
ROCE | 22.76% | 35.75% | 70.86% |
Debt To Equity Ratio | 0.59 | 0.85 | 0.00 |
Net Worth (Rs in crore) | 100.49 | 71.46 | 88.58 |
Purpose of the IPO
The company plans to utilise the net proceeds from fresh issue of shares towards the following purposes:
- Investment in its wholly-owned subsidiary, Valiant Advanced Sciences Private Limited, (“VASPL”) for part-financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for speciality chemicals (ketene and diketene derivatives products) at Saykha Industrial Area, Bharuch, Bharuch, Gujarat aggregating up to Rs 265.65 crore.
- Investment in VASPL for funding its working capital requirements aggregating up to Rs 45 crore; and
- General corporate purposes.
Company Promoters
Shantilal Shivji Vora, Santosh Shantilal Voraand Dhanvallabh Ventures LLP are the promoters of the company.
IPO Details
IPO Subscription Date | September 27 to October 3, 2023 |
Face Value | Rs 10 per share |
Price Band | Rs 133 to Rs 140 per share |
Lot Size | 105 Shares |
Total Issue Size | 1,08,90,000 shares aggregating up to Rs 152.46 crore |
Fresh Issue | 1,08,90,000 shares aggregating up to Rs 152.46 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 105 | Rs 14,700 |
Retail (Maximum) | 13 | 1365 | Rs 1,91,100 |
Small HNI (Minimum) | 14 | 1,470 | Rs 2,05,800 |
Small HNI (Maximum) | 68 | 7,140 | Rs 9,99,600 |
Large HNI (Minimum) | 69 | 7,245 | Rs 10,14,300 |
Allotment Details
Event | Date |
Allotment of Shares | October 5, 2023 |
Initiation of Refunds | October 6, 2023 |
Credit of Shares to Demat Account | October 6, 2023 |
Listing Date | October 9, 2023 |
To check allotment, click here