Valiant Laboratories
Book Building issueMainboard₹152 Cr issue
+15.00%
Listing gain over issue price
Issue size
₹152 Cr
1 lot at cut-off
₹14,700
Lot size
105shares
Open
27 Sep 2023
Close
03 Oct 2023
Allotment
05 Oct 2023
Listing
06 Oct 2023
Listing performance
Issue price
₹140
Listed at
₹161
Listing-day close
₹170.25
Latest price
₹128.43
Close on 23 Oct 2026
Listing gain
+15.00%
Return since issue
-8.26%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Sep 2023 – 03 Oct 2023
- Listing date
- 06 Oct 2023
- Face value
- ₹10 per share
- Issue price
- ₹140 per share
- Lot size
- 105 shares
- Issue type
- Book Building issue
- Total issue size
- ₹152 Cr
- Market cap at offer price
- ₹608 Cr
- Promoter holding
- 100.00% → 74.94% pre-issue → post-issue
- ISIN
- INE0JWS01017
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- 104, Udyog Kshetra, Mulund Goregaon Link Road, Mulund West, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 32,66,970 | — | — |
Application size
Minimum 105 shares per lot, in multiples, at ₹140
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 105 | ₹14,700 |
| Retail (max) | 13 | 1,365 | ₹1,91,100 |
| S-HNI (min) | 14 | 1,470 | ₹2,05,800 |
| S-HNI (max) | 68 | 7,140 | ₹9,99,600 |
| B-HNI (min) | 69 | 7,245 | ₹10,14,300 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
32,66,970
Anchor portion
₹45.74 Cr
at ₹140 per share
Valuation and performance
Valuation at offer price
₹140 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.91 | — |
| P/E (×) | 15.71 | — |
| Market cap | — | ₹608 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 28.86%
- ROCE
- 22.76%
- Debt / equity
- 0.59
- PAT margin
- 8.56%
- NAV per share
- ₹30.86
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Valiant Laboratories
Valiant Laboratories Limited was originally formed as a partnership firm 'M/s. Bharat Chemicals' in 1980 and converted to a public limited company in 2021. The company develops, manufactures and markets Active Pharmaceutical Ingredient (API) / bulk drug products, primarily Paracetamol, which serves as raw material for pharmaceutical formulations. Paracetamol is one of the most commonly taken analgesics worldwide and recommended as first-line therapy for pain by the WHO. The company manufactures Paracetamol in various grades (IP/BP/EP/USP) according to customer pharmacopeia requirements and operates a single manufacturing facility in Tarapur Industrial Area, Palghar, Maharashtra. The company is expanding into specialty chemicals through its subsidiary Valiant Advanced Sciences Private Limited.
Company Analysis
from RHPValiant Laboratories Limited is an Active Pharmaceutical Ingredient (API) manufacturer specializing in Paracetamol production for the pharmaceutical industry.
Valiant Laboratories Limited was originally formed as a partnership firm 'M/s. Bharat Chemicals' in 1980 and converted to a public limited company in 2021. The company develops, manufactures and markets Active Pharmaceutical Ingredient (API) / bulk drug products, primarily Paracetamol, which serves as raw material for pharmaceutical formulations. Paracetamol is one of the most commonly taken analgesics worldwide and recommended as first-line therapy for pain by the WHO. The company manufactures Paracetamol in various grades (IP/BP/EP/USP) according to customer pharmacopeia requirements and operates a single manufacturing facility in Tarapur Industrial Area, Palghar, Maharashtra. The company is expanding into specialty chemicals through its subsidiary Valiant Advanced Sciences Private Limited.
Pharmaceutical API (Active Pharmaceutical Ingredient) manufacturingBulk drugs/speciality chemicals (proposed through subsidiary)
Objects of the Issue
- Investment in VASPL for part-financing its capital expenditure requirements in relation to the setting up of the Proposed Facility ₹800.00 million p.33
- Investment in VASPL for funding its working capital requirements ₹450.00 million p.33
- General corporate purposes p.33
- Investment in VASPL for part-financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for speciality chemicals (ketene and diketene derivatives products) at Saykha Industrial Area, Bharuch, Gujarat ₹800.00 million p.122
- Investment in VASPL for funding its working capital requirements ₹450.00 million p.123
- General corporate purposes p.123
- Investment in wholly owned Subsidiary, Valiant Advanced Sciences Private Limited (VASPL) for part-financing its capital expenditure requirements for setting up a manufacturing facility for speciality chemicals (ketene and diketene derivatives including acetic anhydride) at Saykha Industrial Area, Bharuch, Gujarat ₹ 800.00 million p.124
- Investment in VASPL for funding its working capital requirements ₹ 450.00 million p.130
- General corporate purposes including part or full prepayment/repayment of borrowings, strategic initiatives, acquisitions, investments in future subsidiaries, opening or setting up offices, business development initiatives, R&D, acquiring fixed assets, meeting expenses including capital expenditure requirements, salaries and wages, rent, administration, insurance, repairs p.131
Issue Structure
- Total Issue
- Up to ₹[●] million
- Fresh Issue
- Up to 10,890,000 Equity Shares
- Offer for Sale
- Not applicable
- Price Band
- ₹[●] (Floor Price) to ₹[●] (Cap Price)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and sells Active Pharmaceutical Ingredient (Paracetamol) in various pharmacopeial grades to pharmaceutical formulation manufacturers for use as raw material in finished dosage forms. Revenue is generated through sales to both domestic and export markets, with the majority derived from domestic sales (99.61% in FY2023). The company also earns rental income from related party transactions.
Business Segments
Development, manufacture and marketing of Active Pharmaceutical Ingredient (Paracetamol) in various pharmacopeial grades (IP/BP/EP/USP) for use as raw material by pharmaceutical formulation manufacturers
Manufacturing and sale of paracetamol active pharmaceutical ingredients to pharmaceutical companies and distributors
Manufacturing of speciality chemicals through wholly-owned subsidiary VASPL at Bharuch, Gujarat
Manufacturing and sale of Paracetamol (Acetaminophen) in various grades (IP/BP/EP/USP) for use as a raw material in pharmaceutical formulations for treatment of pain, fever, and cold-related conditions
Through wholly-owned subsidiary VASPL, manufacturing ketene and diketene derivative products including acetic anhydride (for backward integration in Paracetamol production) and other derivatives for agrochemical, pharmaceutical intermediary, dyes, pigments, food and fragrance industries
Manufacturing and sale of pharmaceutical and specialty chemical products
Sale of traded chemical products
Other chemical-related operational revenues
Manufacturing and sale of Paracetamol in various pharmaceutical grades (IP/BP/EP/USP) serving formulation manufacturers
Manufacturing of pharmaceutical active pharmaceutical ingredients
SWOT Analysis
Strengths
- • Established API manufacturing with established customer base(p.42)
- • Growing paracetamol API industry providing market tailwinds(p.32)
- • Quality certifications and audit compliance(p.44)
- • Established manufacturing presence with consistent financial growth(p.61)
- • Strong profitability trajectory demonstrating operational efficiency(p.61)
- • Quality certifications and accreditations enhancing market credibility(p.72)
- • Strategic geographic location for import/export operations(p.63)
- • Experienced promoter with 45+ years in chemicals/pharma(p.136)
- • Strong revenue growth CAGR of 23.90% (FY2017–FY2023)(p.136)
- • Strong profitability with PAT CAGR of 26.81% (FY2017–FY2023)(p.136)
- • Reduced raw material import dependency from 78.06% to 11.92%(p.136)
- • Strategic location 150 km from JNPT port and 110 km from registered office(p.136)
- • High product purity of 99.5% through R&D focus(p.136)
- • Strong balance sheet with RONW of 28.86% in FY2023(p.176)
- • ISO 9001:2015 certified and GMP approved manufacturing(p.174)
- • Experienced leadership with deep industry expertise(p.204)
- • Long-tenured senior management with stability(p.204)
- • No history of labor disputes(p.199)
- • No project execution delays or cost overruns(p.199)
- • Established manufacturer of Paracetamol APIs with diverse product grades(p.310)
- • Strong profitability with consistent PAT generation(p.316)
- • Healthy operating cash generation supporting operations and growth(p.319)
- • Improved working capital management and current ratio(p.311)
Weaknesses
- • Single product dependency on paracetamol(p.42)
- • Single manufacturing facility concentration risk(p.43)
- • High customer concentration(p.48)
- • High raw material supplier concentration(p.44)
- • No long-term customer contracts(p.49)
- • Subsidiary without commercial operations(p.46)
- • No registered trademarks or IP protection(p.49)
- • Low R&D investment(p.56)
- • Significant unsecured debt that can be recalled at any time(p.60)
- • Restrictive covenants limit operational and financial flexibility(p.60)
- • Regulatory compliance lapses with potential penalty exposure(p.63)
- • Dependence on single manufacturing location creating concentration risk(p.65)
- • Contract labour representing significant portion of workforce(p.69)
- • Ongoing litigation involving promoters and directors(p.64)
- • Single product dependency—only manufactures Paracetamol(p.178)
- • High dependence on top 10 customers (42.61% of revenue in FY2023)(p.175)
- • Planned subsidiary VASPL is yet to commence commercial operations(p.125)
- • Declining EBITDA margin from 27.42% (FY2021) to 10.51% (FY2023)(p.175)
- • Declining PAT margin from 16.65% (FY2021) to 8.56% (FY2023)(p.175)
- • Modest international revenue at only 0.39% of total (FY2023)(p.175)
- • Single manufacturing facility concentrated at Tarapur Industrial Area(p.179)
- • High debt burden with significant long-term borrowings(p.250)
- • Concentration of ownership among promoters(p.222)
- • Subsidiary undertaking similar business creates conflict of interest(p.199)
- • No dividend history despite profits(p.231)
- • Rising raw material costs impacting margins(p.315)
- • Significant unsecured borrowings from related parties(p.320)
- • Declining EBITDA margin trend(p.310)
- • Inventory turnover declining indicating slower asset utilization(p.311)
- • High dependence on small number of suppliers(p.329)
- • Material supplier concentration(p.329)
- • Significant outstanding unsecured loans from related parties(p.322)
- • Declining EBITDA margin over three years(p.324)
- • Declining profit margin trend(p.325)
Opportunities
- • Product diversification into specialty chemicals(p.46)
- • Vertical integration through Proposed Facility(p.54)
- • Expansion of export markets(p.48)
- • Growing domestic formulation industry demand(p.32)
- • Expansion into speciality chemicals manufacturing through subsidiary(p.122)
- • Growth strategy targeting market penetration and new territories(p.61)
- • Benefits from public listing enhancing market access and brand(p.122)
- • Paracetamol API market expected to grow at 5–7% CAGR (FY2023–FY2027)(p.174)
- • Diversification into speciality chemicals through VASPL subsidiary(p.177)
- • India's speciality chemicals market growing at 10–12% CAGR (FY2021–2026)(p.166)
- • Government PLI scheme providing ₹69.4 billion incentive for API manufacturing(p.158)
- • Backward integration through VASPL to manufacture acetic anhydride (raw material for paracetamol)(p.178)
- • Growing demand from regulated markets due to China supply disruptions(p.174)
- • Proposed Facility capacity of 5,224 MT/month with expected commercialisation by end of FY2024(p.124)
- • Expansion into specialty chemicals and pharmaceuticals(p.178)
- • Geographic expansion through subsidiary(p.198)
- • Entry into new markets and product categories(p.199)
- • Favorable industry growth trajectory for paracetamol APIs(p.310)
- • Export market expansion opportunity with rising global demand(p.310)
- • Increased volume sales and production capacity(p.311)
- • Tap domestic formulation manufacturer demand(p.310)
Threats
- • Shift to alternative pain relief products(p.42)
- • Intense pharmaceutical industry competition(p.51)
- • Pricing pressure from overseas competitors(p.51)
- • Regulatory changes in pharmaceutical pricing(p.52)
- • Natural disaster and localized disruption risk(p.43)
- • Hazardous materials handling risks(p.51)
- • Raw material supply disruption from geographic concentration(p.44)
- • Reliance on leasehold properties(p.54)
- • Highly concentrated competitive landscape in paracetamol API industry(p.66)
- • Regulatory restrictions on import of raw materials(p.61)
- • Dependence on third-party transportation with exposure to fuel price volatility(p.64)
- • Exposure to macroeconomic downturns affecting overall industry demand(p.75)
- • Operational disruption risks from manufacturing hazards and natural disasters(p.68)
- • Potential future competition from group companies in similar business lines(p.60)
- • Paracetamol API industry currently concentrated with limited players and established competition(p.159)
- • Planned VASPL facility dependent on estimates; no appraisal by bank or financial institution(p.126)
- • Imported raw material (Para-Amino Phenol) still represents 11.87% of purchases and relies on China/Cambodia(p.180)
- • Capacity utilization at only 66.83% in FY2023 (down from 71.11% in FY2022)(p.179)
- • VASPL working capital requirements based on assumptions with no historical deployment(p.130)
- • Supply chain risk from dependence on third-party vendors for equipment and services(p.128)
- • Regulatory risk: multiple government approvals still pending for VASPL facility(p.129)
- • Global API market dominated by China with cost advantage; India competing on quality and compliance(p.157)
- • Dependence on related party transactions(p.208)
- • Exposure to group company concentration risk(p.225)
- • Restrictive covenants limiting dividend distribution ability(p.231)
- • Volatile raw material prices impacting profitability(p.313)
- • Energy cost inflation affecting operating expenses(p.316)
- • Intense competition from established global API manufacturers(p.310)
- • Regulatory and compliance risks in pharmaceutical manufacturing(p.301)
- • Foreign currency exchange rate volatility(p.325)
- • Interest rate risk on borrowings(p.326)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dhanvallabh Ventures LLP | Promoter | 62.50% | — |
| Shantilal Shivji Vora | Promoter | 10.01% | — |
| Santosh Shantilal Vora | Promoter | 10.01% | — |
| Dhanvallabh Ventures LLP | Promoter | 62.50% | — |
| Shantilal Shivji Vora | Promoter | 10.01% | — |
| Santosh Shantilal Vora | Promoter | 10.01% | — |
| Kanchan Shantilal Vora | Promoter Group | 4.96% | — |
| Paresh Shashikant Shah | Promoter Group | 12.49% | — |
| Shantilal Shivji Vora | Promoter | — | — |
| Santosh Shantilal Vora | Promoter | — | — |
| Dhanvallabh Ventures LLP | Promoter Group | — | — |
| Dhanvallabh Ventures LLP | Corporate Promoter | 62.50% | — |
| Shantilal Shivji Vora | Promoter | 10.01% | — |
| Santosh Shantilal Vora | Promoter | 10.01% | — |
| Dhanvallabh Ventures LLP | Holding company / Promoter Group | 62.50% | — |
| Shantilal Shivji Vora | Promoter | 10.01% | — |
| Santosh Shantilal Vora | Promoter | 10.01% | — |
Leadership
Velji Karamshi Gogri · Chairman
Santosh Shantilal Vora · Managing Director
Paresh Shashikant Shah · Chief Financial Officer
Saloni Mehta · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Valiant Laboratories IPO FAQs
What is the lot size of Valiant Laboratories IPO?
The minimum lot size of Valiant Laboratories IPO is 105 shares. One lot costs ₹14,700 at the cut-off price.
When does Valiant Laboratories IPO open and close?
Valiant Laboratories IPO opened for subscription on 27 Sep 2023 and closed on 03 Oct 2023.
What is the listing date of Valiant Laboratories IPO?
Valiant Laboratories IPO listed on 06 Oct 2023.