Valiant Laboratories IPO sees 72% subscription on penultimate day, set to close today

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On the second day of the IPO, the retail investors’ portion was oversubscribed by 1.06 times by the evening. The non-institutional investors’ (NII) component saw a subscription rate of 19%, while the Qualified Institutional Buyers (QIBs) portion has yet to receive full subscription. The retail investors’ component received bids for 40,43,760 shares against the 38,11,500 shares on offer. The NII part got bids for 3,11,640 shares compared to the 16,33,500 on offer. The QIBs sector received bids for just 2,940 shares against the 21,78,030 shares on offer.

The IPO comprises a total of 1,08,90,000 fresh equity shares with no offer-for-sale (OFS) component. The price band has been fixed at ₹113 to ₹140 per equity share. The allotment date is expected to be finalized on Thursday, October 5, 2023 and the IPO will be listed on NSE and BSE on Monday, October 9, 2023.

In the anchor round conducted on Monday, September 26, Valiant Laboratories raised capital of ₹45.74 crore ($6.17 million). Retail investors were required to bid for a minimum of one lot consisting of 105 shares with the capital of ₹14,700 ($198).

Unistone Capital is the Book Running Lead Manager for this offering and Link Intime India is the Registrar to the Offer. In the fiscal year 2022-23, the company reported a total revenue of ₹338.77 crore ($45.7 million), compared to ₹293.47 crore ($39.7 million) in the previous fiscal year. The net profit for the same period increased to ₹29 crore ($3.92 million), from ₹27.50 crore ($3.72 million) in FY22.

Valiant Laboratories plans to utilize the funds from the IPO for financing the capital expenditure of its wholly-owned subsidiary, Valiant Advanced Sciences Private Limited (VASPL), working capital requirements, and other general corporate purposes.

The funds will be used specifically for investment in VASPL to partially fund its capital expenditure needs in connection with the establishment of a manufacturing facility for specialty chemicals at Saykha Industrial Area, Bharuch, Gujarat; an investment in VASPL to fund its working capital requirements; and to meet general corporate purposes.

As part of the IPO, Valiant Laboratories raised ₹45.74 crore from anchor investors on Tuesday, September 26. Leading Light Fund VCC – The Triumph Fund – bought shares worth ₹20 crore. Saint Capital Fund, Astorne Captal VCC – Arven, and Negen Undiscovered Value Fund also participated in the anchor book.

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