Valiant Laboratories IPO: Issue subscribed 22 times on final day

The initial public offering (IPO) of Valiant Laboratories has been subscribed 21.37 times on the final day of bidding so far. A total of 15,50,78,805 shares were bid for as compared to 76,23,030 shares on offer.

The quota for qualified institutional buyers(QIBs) was subscribed 12.35 times, with bids received for 2,68,96,485 shares out of 21,78,030 shares reserved. The non-institutional investors' quota was subscribed 54.45 times, with bids received for 8,89,40,565 shares of the total 16,33,500 shares on offer.

The retail individual investors(RIIs) category was subscribed 12.35 times as the company received bids for 4,70,87,565 shares of the total 38,11,500 on offer. Of the total bids received, the total number of bids received at the cut-off price stands at 4,00,13,820.

The ₹152.46-crore IPO of Mumbai-based pharmaceutical company opened for subscription on September 27 and will close on October 3. It has fixed the price band at ₹133-140 per share.

The issue opened the anchor book on September 26. Four anchor investors -- Leading Light Fund VCC- The Triumph Fund, Saint Capital Fund, Astorne Capital VCC-Arven, and Negen Undiscovered Value Fund -- took part in the anchor issue, which was subscribed 100%. Total of 32,66,970 equity shares were allocated, raking in around ₹45.7 crore.

Valiant Labs is an active pharmaceutical ingredient (API)/bulk drug manufacturing company with a focus on producing Paracetamol. 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% in the global supply by volume of generic drugs. The overall API industry in India grew from ₹78,100 crore in fiscal 2017 to ₹1,17,900 crore in fiscal 2022, registering a CAGR of 8.5%.

For the financial year ended March 31, 2023, March 31, 2022, and March 31, 2021, the company's revenue from sales outside India contributed 0.39%, 0.60 %, and 0.33 %, respectively, of its total revenue from operations. Its revenue stood at ₹333.91 crore in FY23, up from ₹291.5 crore in FY22 and ₹182.3 crore in FY21. The profit after tax (PAT) was ₹ 28.9 crore in FY23, up from ₹27.4 crore in FY22 and 30.5 crore in FY21. In fiscal 2023, fiscal 2022, and fiscal 2021, the company says it recorded strong cash flows from operations, with its net cash flow from operations at ₹9.1 crore, ₹2.2 crore, and ₹22.9 crore, respectively.