Formed in 1980, Valiant Laboratories Limited (VLL) is an Active Pharmaceutical Ingredient (API) company that manufactures Paracetamol. The company has a manufacturing facility in Palghar, Maharashtra and also has an R&D facility that is equipped with an analytical laboratory and infrastructure for ongoing product developmental activities. The wholly-owned subsidiary of the VLL, Valiant Advanced Sciences Private Limited (VASPL), was incorporated on July 8, 2022. The subsidiary was set up as a strategic move to broaden its scope into different chemical sectors.
VASPL manufactures ketene and diketene derivative products. A new manufacturing facility is planned for construction on vacant land located in Gujarat. The land was taken on a lease term. The proposed facility is located close to Hazira and Kandla ports in Gujarat. The main raw material needed to manufacture VASPL’s products includes acetic acid, which can be sourced from both domestic and international markets.
The Indian market for ketene, diketene and derivatives is expected to grow at 6-7% CAGR to USD 330-340 million by FY 2025. The market for only diketene and diketene derivatives is expected to rise at 6-7% CAGR, reaching USD 210-220 million by FY 2025. India’s annual diketene consumption is around ~28,000 tons, where ~40% is imported from China, the USA and Europe. The new manufacturing unit from VASPL can reduce the imports from other countries and give VASPL business opportunities.
Valiant Laboratories Limited IPO Details
Valiant Laboratories Limited IPO Date
Valiant Laboratories IPO will open on September 27, 2023, and close on October 3, 2023.The IPO will be listed on the NSE and BSE exchanges on October 9, 2023.
Valiant Laboratories Limited IPO Price Band
Valiant Laboratories is a fresh IPO. The issue comprises 1,08,90,000 equity shares and is priced at ₹133 to ₹140 per share.
Valiant Laboratories Limited IPO Lot Size
Valiant Laboratories IPO lot size is 105 shares, and retail investors need to apply for a minimum of 1 lot, which is ₹14,700.
Valiant Laboratories Limited IPO Objectives
The objectives of Valiant Laboratories Limited's IPO are listed below:
- To fund the working capital requirement of the company.
- To meet general corporate purposes.
- To fund the capital expenditure requirements to set up the subsidiary’s manufacturing facility in Gujarat.
Peer Details
As per DRHP, the listed companies in India that are involved in a similar business to that of Valiant Laboratories are Granules India Limited, Jagsonpal Pharmaceuticals Limited, Alkyl Amines Chemicals Limited, and Laxmi Organic Industries Limited.
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Contact Details of Valiant Laboratories Limited IPO
- Registered office: 104, Udyog Kshetra, Mulund Goregaon LinkRoad, Mulund West, Mumbai - 400080, Maharashtra.
- Phone: +912249712001
- E-mail:complianceofficer@valiantlabs.in
Valiant Laboratories Ltd Company Financials
| Particulars | FY23 ( ₹ in million ) | FY22 ( ₹ in million ) |
|---|---|---|
| Total Income | 3387.72 | 2,934.72 |
| Profit After Tax | 289.98 | 274.96 |
| Net Worth | 1,004.90 | 714.60 |
| Earnings Per Share (in ₹) | 8.91 | 9.52 |
| Total Borrowings | 594 | 606.81 |
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Strengths
2The company displays a strong financial performance where the restated profit after tax grew at a CAGR of 26.81% to ₹289.98 million between FY 2017 and FY 2023.
Eventually, year by year, the company is reducing its dependence on imported raw materials like Para Amino Phenol from Cambodia and China to manufacture Paracetamol. In FY 2021, the company imported 74.86% of the total raw material purchase, which was reduced to 11.87% in FY 2023.
Risks
2The company manufactures only a single product, i.e., paracetamol. Any decline in the demand for the product will adversely affect the company.
The company operates from only a single manufacturing unit. Any social, political or economic disruptions in the region can adversely impact the operations of the company.
