The initial public offering (IPO) of Valiant Laboratories, a pharmaceutical ingredient manufacturing firm, began on September 27 and closed on October 3. As of the end of the second day of bidding on Friday, September 29, the IPO had received 2.17 times consolidated subscription, with 76,23,030 bids submitted against 1,65,77,925 shares on offer.
The allotment of the IPO is scheduled for October 5, 2023, and the shares of Valiant Laboratories will be listed on October 9.
In the grey market, unlisted shares of Valiant Laboratories Ltd are currently trading at a premium of Rs 15 compared to its issue price. This premium of Rs 15 represents a 10.71 percent increase over the upper issue price of Rs 140 per share. The grey market premium (GMP) reflects the willingness of investors to pay more than the IPO’s issue price, suggesting an expected listing gain of 10.71 percent from the public issue.
Key Details of Valiant Laboratories IPO
- Subscription Period: September 27 to October 3, 2023.
- Issue Type: Fresh issuance of up to 1.08 crore equity shares with no offer-for-sale component.
- Price Range: Rs 133-140 per share.
- Minimum Bid: Investors can bid for a minimum of 69 shares and in multiples thereof.
- Utilization of Proceeds: The funds raised from the IPO will be used to establish a manufacturing facility for speciality chemicals in Gujarat through its subsidiary, Valiant Advanced Sciences Private Ltd. Additionally, the funds will be allocated to meet the working capital requirements of the subsidiary company.
- Company Focus: Valiant Laboratories is primarily engaged in the manufacturing of active pharmaceutical ingredients (APIs) or bulk drugs, with a focus on producing paracetamol, which is commonly used to treat various ailments, including headaches, muscle aches, arthritis, and fever.
- Listing Exchanges: The equity shares of Valiant Laboratories will be listed on both the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange).
The grey market premium indicates investor sentiment and suggests that there is anticipation of a positive listing for Valiant Laboratories. Investors will be closely watching the IPO’s performance once it begins trading on the stock exchanges.