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.