Valiant Laboratories, a leading player in the pharmaceutical industry, has marked its stock market debut with a strong performance. The company’s shares opened at a significant premium of 15.8% compared to its IPO issue price.
On the National Stock Exchange (NSE), Valiant Laboratories’ shares commenced trading at ₹162.15 per share, while on the Bombay Stock Exchange (BSE), they opened at ₹161 per share.
Business journalist Rupesh Kumar Singh commented on the listing, stating, “Valiant Laboratories IPO made a remarkable debut on the stock market today at ₹162.15 per share, reflecting a substantial 15.8% premium over its IPO price of ₹140. The IPO received strong interest from investors, with a subscription rate of 29.76 times. This positive response may be attributed to the company’s improving financial performance, experienced promoters, and a reasonable IPO price.”
He further advised investors to consider associated risks, including the company’s single-product focus, reliance on a limited number of suppliers and customers, and the competitive nature of the industry. While suggesting investors book profits and exit their positions, he added that those with a long-term outlook should set a stop loss at ₹150.
The Valiant Laboratories IPO was open for subscription from September 27 to October 3, with a price band of ₹133 to ₹140 per equity share. The IPO exclusively comprised fresh issue shares, totaling 10,890,000 equity shares, with no offer for sale component.
The IPO share allocation was as follows: up to 50% for Qualified Institutional Buyers (QIBs), a minimum of 15% for Non-Institutional Investors (NIIs), and at least 35% for Retail Investors.
The IPO proceeds will serve various purposes, including investments in Valiant Advanced Sciences Private Limited (VASPL), a wholly-owned subsidiary, to support the establishment of a manufacturing facility for specialty chemicals in Bharuch, Gujarat. Additionally, funds will be allocated for VASPL’s working capital needs and general corporate purposes.
Unistone Capital Private Ltd served as the book-running lead manager for the Valiant IPO, with Link Intime India Private Ltd acting as the IPO registrar.
Valiant Laboratories’ strong listing debut reflects investor confidence in the company’s prospects and the pharmaceutical industry as a whole.