Valiant Labs freezes at upper circuit on debut; up 22% over issue price
.webp)
Valiant Laboratories made a good debut on the bourses, with shares of commodity chemicals company listed at Rs 162.15, a 16 per cent premium to the issue price of Rs 140 per share on the National Stock Exchange (NSE) on Friday. The stock listed at Rs 161, a 15 per cent premium to its issue price on the BSE.
Post listing, at 10:03 AM; shares of Valiant Labs were locked at the 5 per cent upper circuit at Rs 170.25, up 22 per cent over its issue price. The stock was frozen 5 per cent higher from the opening price at Rs 169.05 on the BSE. A combined 3.3 million equity shares had changed hands. There were pending buy orders for around 1 million shares on the NSE and BSE.
The Initial Public Offering (IPO) of pharmaceutical ingredient manufacturing firm had received 29.76 times subscription. The portion for non-institutional investors was subscribed 73.64 times while the quota for qualified institutional buyers (QIB) received 20.83 times subscription. Retail individual investors portion was subscribed 16.06 times.
Shivani Nyati, Head of Wealth, Swastika Investmart said that the positive response to the IPO could be due to the company's improving financial performance, experienced promoters, and fair IPO price.
"However, investors should carefully consider related risks as well, like the company's single-product focus, dependence on a limited number of suppliers and customers, and the competitive industry. Thus, investors are advised to book profits and exit their positions, but those who want to hold for the long term should keep a stop loss at 150.", Shivani added.
Proceeds of the issue will be utilised to set up a manufacturing facility for speciality chemicals in Gujarat through its subsidiary -- Valiant Advanced Sciences Private Ltd -- and to meet the working capital requirements of the subsidiary company.
Valiant Labs is an active pharmaceutical ingredient (API) or bulk drug manufacturing company with its focus on manufacturing paracetamol, used in the treatment of headaches, muscle aches, arthritis, backache, toothache, cold, and fever.
Going forward, the paracetamol API industry is expected to clock a CAGR of 5-7 per cent between fiscal 2023 and fiscal 2027, largely driven by the demand from domestic formulation manufacturers as well as export markets.
The company intends to enhance its presence in international geographies, including regulated markets where its strategy is primarily to become the preferred supplier of Paracetamol API to pharmaceutical companies. In terms of revenue mix, the domestic market contributes 99.61 per cent to total revenue in FY2023 and exports 0.39 per cent.
The company is venturing into speciality chemicals because of its varied applications in agrochemical, pharma intermediary, dyes, pigments, food and fragrance industries. Production and supply of speciality chemicals through its Proposed Facility in Gujarat will diversify its revenue and increase growth.
The company’s balance sheet strength, high ROCE, positive operating cash flows, shorter debtor holding period, enable the company to fund its strategic initiatives, pursue opportunities for growth and better manage unanticipated cash flow variations, Valiant Labs said in Red Herring Prospectus.
The company is reducing its dependence on import of raw materials. The company imports Para Amino Phenol, being raw material for manufacturing of Paracetamol from China and Cambodia. Its percentage of imports to total purchase fell from 74.86 per cent in FY21 to 11.87 per cent in FY2023.
However, the company is dependent on sales from single product (paracetamol) for its revenue. Any changes to the paracetamol API industry or product demand will adversely affect its business.
Other Latest News
.webp)
After Haryana, the BJP would also sweep the upcoming assembly elections in Maharashtra and Jharkhand, BJP president J P Nadda asserted on Friday.
Nadda, who paid obeisance at the Shri Naina Devi temple here, said the people were happy with the performance of the BJP government at the Centre led by Prime Minister Narendra Modi.
.webp)
Noel Tata, half-brother of the late Ratan Tata, has been unanimously elected as the chairman of Tata Trusts following the passing of the legendary industrialist Ratan Tata, CNBC-TV18 reported on Friday. Noel Tata is already a key trustee of the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. He will now lead the trusts that hold a controlling stake in Tata Sons, the primary holding company of the Tata Group.
The move has long been anticipated, given Noel Tata’s close involvement with Tata Trusts and his extensive experience within the conglomerate.
.webp)
After the Haryana poll debacle, Congress MP and LoP Rahul Gandhi attended the review meeting called by party president Mallikarjun Kharge at his residence in Delhi. Among those present were the party's Haryana observers Ashok Gehlot, Ajay Maken, Deepak Babaria and KC Venugopal.
Sources said that the Congress MP remained largely quite, but when his turn came, he observed two things; one being that Electronic Voting Machines (EVM) and the Election Commission of India (EC) "have much to answer" and another was that "the local leaders were more interested in their own progress than that of the party", leaving a loud silence in the room.
.webp)
Former US President Donald Trump, who is campaigning for another term in the White House, promised to introduce a system of "reciprocal tariffs" if re-elected. In an economic policy speech in Detroit on Thursday, the Republican candidate singled out India, claiming it imposes some of the highest tariffs on foreign goods among major global economies.
This is not the first time Trump has criticised India for its tariffs. Just last month, he called the nation a "big abuser" of US trade relations.
.webp)
Tamil Nadu Chief Minister M K Stalin has announced a bonus and ex-gratia for 2.75 lakh employees of state public sector undertakings and statutory boards for the 2023-24 fiscal.
Accordingly, all eligible workers of profit making PSUs under group C and D will be paid a minimum bonus of Rs 8,400 and a maximum of Rs 16,800, amounting to 8.33 per cent bonus and an ex-gratia of 11.67 per cent, an official release here said.
.webp)
.webp)
.webp)
.webp)
.webp)
