Everything you need to know about Valiant Laboratories Limited IPO

About the company

Formed in 1980 as a partnership firm before eventually becoming a public limited company in 2021, Valiant Laboratories Limited is an Active Pharmaceutical Ingredient (API) / Bulk Drug manufacturing company with a focus on the manufacturing of Paracetamol.

Bulk drugs/Active Pharmaceutical Ingredients (API) serve as raw materials for manufacturing finished dosage forms or formulations. 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). Paracetamol has several applications such as usage in the treatment of headaches, muscle aches, arthritis, backaches, toothaches, colds, and fever. We manufacture Paracetamol in various grades such as IP/BP/EP/USP, as per the pharmacopeia requirements of the customers.

Their manufacturing facility is at Boisar, Palghar in the state of Maharashtra, India which is spread over about 2,000 sq. mts. with an aggregate annual total installed capacity of 9,000 MT per annum. The company holds a certificate of good manufacturing practices (GMP) for the manufacture and sale of bulk drugs / API and ISO 9001:2015 certification.

About the Industry:

The pharmaceutical API industry in India is ranked third-largest globally in terms of volume, behind China and Italy – About 35% of API and intermediaries produced in India are exported and the remaining API and intermediaries are sold in the domestic market, including captive consumption by several large formulation players. India is the largest provider of generic drugs, globally contributing to ~20% of global supply by volume of generic drugs. The overall API industry in India grew from Rs. 781 billion in Fiscal 2017 to Rs. 1,179 billion in Fiscal 2022 registering a CAGR of 8.5% in rupee terms.

Going forward the API industry is expected to clock a growth rate of 9-11% between Fiscal 2022 and Fiscal 2027, largely driven by growth in API exports, which is expected to deliver healthy growth during the period under consideration. The paracetamol API industry (Domestic consumption + exports) grew from Rs. 22 billion in Fiscal 2017 to Rs. 39 billion in Fiscal 2023. The paracetamol API market growth was mainly supported by growth in the pain and analgesics therapy area which focuses on the treatment of common fever, cough, and cold as well as volume rise coupled with strong realization levels for players. The paracetamol API demand saw an uptick in fiscal 2022 owing to pent-up demand, due to COVID-19 and extensive usage of common cold and fever drugs during the second wave of covid-19. Also, the boost in export demand due to supply restrictions in China gave opportunities for Indian manufacturers to tap the potential export market. Going forward the paracetamol API industry is expected to clock a CAGR of 5-7% between fiscal 2023 and fiscal 2027, largely driven by the demand from domestic formulation manufacturers as well as export markets.

Issue size:

The entire Rs. 152.46 crore public offer of Valiant Laboratories Limited comprises of fresh equity issue.

Objects of the issue and proceeds utilization:

Purpose Proceeds (₹ crores)
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 specialty chemicals at Saykha Industrial Area, Bharuch 80
Investment in VASPL for funding its working capital requirements. 45
General corporate purposes Balance

Financial information and other valuation metrics

Financial Year Total Assets (₹ crores) Total Revenue (₹ crores) Profit After Tax (₹ crores) EPS EBITDA (₹ crores)
March 31, 2021 106.31 183.78 30.59 10.83 50
March 31, 2022 181.81 293.47 27.50 9.52 42.32
March 31, 2023 212.76 338.77 29.00 8.91 35.09

IPO Schedule

Issue Period 27th September to 3rd October 2023
Price band ₹ 133 - 140
Minimum Bid quantity 105 & Multiples thereof
Deadline for accepting UPI mandate Until 5 PM on the issue closing day
Finalization of Allotment 5th October 2023
Initiation of Refunds 6th October 2023
Credit of Shares 6th October 2023
Date of Listing 9th October 2023
Mandate end date 18th October 2023
Anchor Investors Lock-In End Date 2nd November 2023

How to apply to the Valiant Laboratories Limited IPO?

You can apply for the Valiant Laboratories Limited IPO using any supported UPI app by following two steps:

  • Enter your bid on Kite
  • Accept the UPI mandate on your phone

On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

How to check the allotment status for Valiant Laboratories Limited IPO?

You can check the allotment status for the Valiant Laboratories Limited IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.

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