Valiant Laboratories concludes successful IPO, oversubscribed by 5.16 times

  • Stock Market News
Valiant Laboratories concludes successful IPO, oversubscribed by 5.16 times
Credit: © Reuters.

Valiant Laboratories, a producer of Paracetamol with an annual output of 9,000 metric tons, has concluded its initial public offering (IPO) on Tuesday. The IPO was oversubscribed by 5.16 times, demonstrating strong investor interest.

The IPO launched on September 27 and closed on October 3, marking a week-long opportunity for investors to buy into the company's shares. The entirely fresh issue consisted of 1.08 crore shares (1,08,90,000 shares), priced between ₹133 and ₹140 with a face value of ₹10 per share. The offering was managed by Unistone Capital Pvt., with the objective to raise ₹152.46 crore.

The funds raised from the IPO will be utilized to support the working capital needs and expansion efforts of Valiant Advanced Sciences Pvt., a subsidiary of Valiant Laboratories. Specifically, the proceeds will fund a Gujarat-based specialty chemicals facility.

The investor response was robust across all categories, with retail and non-institutional investors subscribing at 5.66 and 9.47 times respectively.

Following the successful subscription period, Valiant Laboratories' shares are set 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 enhance the company's visibility in the market.

InvestingPro offers insightful data on companies like Valiant Laboratories. According to InvestingPro Tips, the company exhibits low earnings quality, with free cash flow trailing net income. Despite this, it has managed to remain profitable over the last twelve months. Interestingly, the stock price often moves in the opposite direction of the market, which might be a valuable insight for potential investors. It's worth noting that Valiant Laboratories does not pay a dividend to shareholders, which could be a deciding factor for certain investors. For further information and more tips, you can visit the InvestingPro page.

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