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Valiant Laboratories sees strong debut; lists over 16% premium on bourses; Should you hold or book profit

Valiant Laboratories made a robust market debut, with its shares listing at a premium of 15.82% over the IPO price. On the NSE, the stock opened at Rs 162.15, while on the BSE, it started trading at Rs 161, surpassing the issue price of Rs 140. This strong debut provided investors with a substantial return, with each share gaining Rs 22.15, reflecting nearly a 16% increase.

Positive IPO Response

The IPO of Valiant Laboratories received significant attention from investors, being subscribed 29.76 times, indicating a favorable response. However, investors are advised to approach the investment cautiously, considering various associated risks.

Recommendation to Investors

Shivani Nyati, Head of Wealth at Swastika Investmart, suggests that while the Valiant Laboratories IPO had a positive listing and investor response, it’s crucial for investors to evaluate potential risks. These include the company’s single-product focus, dependence on a limited number of suppliers and customers, and competition within the industry. Nyati recommends that investors consider booking profits and exiting their positions. For those intending to hold for the long term, it’s advised to maintain a stop loss at Rs 150.

IPO Details

The Valiant Laboratories IPO was open for public subscription from September 27, 2023, to October 3, 2023. The price band for the public issue was set at Rs 133-140 per equity share with a face value of Rs 10 each. It comprised a fresh issue of 10,890,000 equity shares, raising Rs 152.46 crore. The minimum lot size for the IPO was 105 shares, requiring retail investors to invest Rs 14,700. The subscription statistics were as follows: Qualified Institutional Buyers (QIBs) category – 20.83 times, non-institutional investors – 73.64 times, and Retail Individual Investors (RIIs) quota – 16.06 times.

About Valiant Laboratories

Valiant Laboratories specializes in manufacturing Active Pharmaceutical Ingredients (APIs) and Bulk Drugs, with a primary focus on producing Paracetamol in various grades and sizes according to customer specifications. The company has a track record of consistent revenue growth, achieving a Compound Annual Growth Rate (CAGR) of 35.3% during FY21-23.


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