Investing.com | Editor Ambhini Aishwarya
Published October 3, 2023, 2:24 am ET
Valiant Laboratories, a maker of paracetamol with an annual output of 9,000 tons, completed its initial public offering (IPO) on Tuesday. The IPO was oversubscribed by 5.16 times, showing strong investor interest.
The IPO launched on September 27 and closed on October 3, giving investors a week-long opportunity to buy into the company’s shares. The all-new issue consisted of 1.08 crore equity shares (1,08,90,000 shares) priced between ₹133 and ₹140 and having a face value of ₹10 per share. The offering was led by Unistone Capital Pvt. managed with an aim to raise ₹152.46 crore.
Funds raised through the IPO will be used to support the working capital needs and expansion efforts of Valiant Advanced Sciences Pvt., a subsidiary of Valiant Laboratories. In particular, the proceeds will be used to finance a specialty chemicals plant in Gujarat.
Investor response was robust across all categories, with retail and non-institutional investors subscribing at 5.66x and 9.47x, respectively.
After the successful subscription period, the shares of Valiant Laboratories are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The listing will provide liquidity for investors and further increase the company’s visibility in the market.
InvestingPro provides insightful data on companies like Valiant Laboratories. According to InvestingPro Tips, the company has poor earnings quality, with free cash flow lagging behind net income. Nevertheless, it has managed to remain profitable over the past twelve months. Interestingly, the share price often moves in the opposite direction of the market, which could be a valuable insight for potential investors. It’s worth noting that Valiant Laboratories doesn’t pay a dividend to shareholders, which could be a deciding factor for certain investors. For more information and more tips, visit the InvestingPro page.
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Written by: Investing.com
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