Valiant Laboratories IPO: A Promising Entry into the Pharmaceutical Sector
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Introduction:
Valiant Laboratories Limited is a prominent pharmaceutical ingredient manufacturing company based in India, specializing in the production of Paracetamol. With its state-of-the-art manufacturing unit spanning 2,000 square meters in Palghar, Maharashtra, and an annual installed capacity of 9,000 MT, the company is a key player in the industry. Valiant Laboratories also boasts an advanced R&D facility equipped with analytical labs for product development. In Fiscal 2023, the company reported robust revenue from operations amounting to Rs. 3,339.10 million, showcasing its steady growth and contribution to the pharmaceutical sector.
Valiant Laboratories IPO: A Promising Entry into the Pharmaceutical Sector
The Indian stock market is abuzz with excitement as Valiant Laboratories Limited gears up for its Initial Public Offering (IPO). With an IPO date set from September 27, 2023, to October 3, 2023, this pharmaceutical ingredient manufacturing company is poised to make its mark in the world of stocks. Investors, both seasoned and new, are eagerly awaiting this IPO, hoping to seize a lucrative opportunity in the ever-evolving pharmaceutical industry.
Key IPO Details:
- Face Value: ₹10 per share
- Price Band: ₹133 to ₹140 per share
- Lot Size: 105 Shares
- Total Issue Size: 10,890,000 shares (aggregating up to ₹152.46 Cr)
- Issue Type: Book Built Issue IPO
- Listing At: BSE, NSE
- Shareholding Pre-Issue: 32,560,000
- Shareholding Post-Issue: 43,450,000
IPO Timeline:
- IPO Open Date: Wednesday, September 27, 2023
- IPO Close Date: Tuesday, October 3, 2023
- Basis of Allotment: Thursday, October 5, 2023
- Initiation of Refunds: Friday, October 6, 2023
- Credit of Shares to Demat: Friday, October 6, 2023
- Listing Date: Monday, October 9, 2023
IPO Reservation:
- QIB Shares Offered: Not more than 50.00% of the Net offer
- NII (HNI) Shares Offered: Not less than 15.00% of the Offer
- Retail Shares Offered: Not less than 35.00% of the Offer
Investment Options:
- Retail (Min): 1 Lot (105 Shares) for ₹14,700
- Retail (Max): 13 Lots (1365 Shares) for ₹191,100
- S-HNI (Min): 14 Lots (1,470 Shares) for ₹205,800
- S-HNI (Max): 68 Lots (7,140 Shares) for ₹999,600
- B-HNI (Min): 69 Lots (7,245 Shares) for ₹1,014,300
FAQs (Frequently Asked Questions):
Q1: What is an IPO, and why is it significant?
An IPO, or Initial Public Offering, is the process through which a private company offers its shares to the public for the first time. It marks the transition from a privately held company to a publicly-traded one. IPOs are significant for several reasons:
Capital Generation: IPOs enable companies to raise substantial capital by selling shares to the public. This capital can be used for business expansion, debt reduction, or funding new projects.
Liquidity: Going public provides liquidity to existing shareholders, allowing them to sell their shares and realize gains. It also creates a market for the company's shares, making it easier for investors to buy and sell.
Visibility: IPOs garner significant media attention and investor interest, increasing the company's visibility in the financial market. This can attract potential customers, partners, and employees.
Valuation: The IPO process involves setting an initial market value for the company's shares. This valuation can have a lasting impact on the company's perceived worth and future funding opportunities.
Q2: How can I apply for Valiant Laboratories IPO?
To apply for Valiant Laboratories IPO, you can follow these steps:
- Open a Demat and trading account with a registered stockbroker.
- Check if the IPO is open for subscription within the specified dates.
- Submit your IPO application through your broker's online or offline platform.
- Provide the required details and the number of shares you want to apply for.
- Transfer funds to cover the IPO application amount.
- Wait for the basis of allotment to be announced.
- If you are allotted shares, they will be credited to your Demat account on the listing date.
Q3: What is the price band, and how is it determined?
The price band in an IPO represents the range of prices at which investors can bid for shares. It consists of a floor price (the minimum bid price) and a cap price (the maximum bid price). The IPO issuer, along with its underwriters and lead managers, determines the price band based on various factors, including the company's financials, industry conditions, demand for the stock, and consultation with regulatory authorities. Investors can place bids within this price range.
Q4: What are the different investor categories in this IPO?
In Valiant Laboratories IPO, there are typically three main investor categories:
QIB (Qualified Institutional Buyers): This category includes institutional investors like mutual funds, banks, financial institutions, and foreign institutional investors.
NII (Non-Institutional Investors) or HNI (High Net Worth Individuals): These are individual investors who apply for large amounts of shares, exceeding a certain threshold.
Retail Investors: This category comprises individual investors who apply for smaller quantities of shares. They often get preference in the allotment.
Q5: When and where will the shares be listed for trading?
The shares of Valiant Laboratories are expected to be listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) on Monday, October 9, 2023. Trading in the shares will commence on that day.
Q6: What factors should I consider before investing in this IPO?
Before investing in the Valiant Laboratories IPO or any IPO, you should consider factors such as the company's financial health, business model, competitive landscape, growth prospects, industry trends, and the IPO's valuation. Additionally, it's essential to review the offer document (RHP) for detailed information about the company and the IPO.
Q7: What is the role of the grey market price in IPOs?
The grey market price is an unofficial market where shares of an IPO are traded before their official listing on stock exchanges. It provides an indication of the expected listing price and demand for the shares. However, investing based on grey market prices can be risky, as these prices are not regulated and can be highly speculative.
Q8: Can I trade Valiant Laboratories shares in the stock market?
Yes, after the IPO listing on October 9, 2023, Valiant Laboratories shares will be available for trading on the BSE and NSE. You can buy and sell these shares through your Demat and trading account with a stockbroker.
Q9: What are the key trends in the pharmaceutical sector in India?
Key trends in the Indian pharmaceutical sector include a growing focus on research and development, increased exports of generic medicines, expanding healthcare infrastructure, and advancements in biotechnology and specialty medicines. The sector continues to play a vital role in both domestic and global pharmaceutical markets.
Q10: Where can I find more information about Valiant Laboratories and its IPO?
You can find more information about Valiant Laboratories and its IPO in the company's offer document, commonly known as the Red Herring Prospectus (RHP). This document provides comprehensive details about the company's business, financials, risk factors, and the IPO process. Additionally, you can refer to the official websites of stock exchanges, SEBI (Securities and Exchange Board of India), and financial news sources for updates on the IPO.
Financials Of the Valiant Laboratories (Amount In Crore)
| Period Ended | Assets | Revenue | Profit After Tax |
|---|---|---|---|
| 31 Mar 2021 | 106.31 | 183.78 | 30.59 |
| 31 Mar 2022 | 181.81 | 293.47 | 27.50 |
| 31 Mar 2023 | 212.76 | 338.77 | 29.00 |
Important Links
Open Free Demat Account : Angel One
Upcoming IPO : Click here
IPO Allotment status : Check here ( Link Intime India Private Ltd )