Unlisted shares of Valiant Laboratories Ltd are currently trading Rs 10 higher in the grey market, which is about 7.14 per cent higher than its upper issue price of Rs 140 per share
Valiant Laboratories IPO: The initial public offering (IPO) of pharmaceutical ingredient manufacturing firm Valiant Laboratories, which opened for public subscription on September 27, Wednesday, received 33 per cent subscription on the first day of bidding. The Rs 152.46-crore IPO received bids for 24,81,045 shares against 76,23,030 shares on offer.
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The portion for retail individual investors was subscribed 61 per cent on Wednesday, while the category for non-institutional investors received 10 per cent subscription.
The IPO allotment will take place on October 5, and the shares will be listed on BSE and NSE on October 9.
Valiant Laboratories IPO GMP
According to market observers, Valiant Laboratories Ltd is currently trading Rs 10 higher in the grey market. The Rs 10 grey market premium or GMP is about 7.14 per cent higher than its upper issue price of Rs 140 per share. This means the grey market is expecting an 7.14 per cent listing gain from the public issue.
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‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
About Valiant Laboratories IPO
The IPO is an entirely fresh issuance of up to 1.08 crore equity shares with no offer for sale component. The price range for the offer is at Rs 133-140 per share.
The proceeds of the issue will be utilised to set up a manufacturing facility for speciality chemicals in Gujarat through its subsidiary — Valiant Advanced Sciences Private Ltd — and to meet the working capital requirements of the subsidiary company.
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Valiant Laboratories is an active pharmaceutical ingredient or bulk drug manufacturing company with its focus on manufacturing paracetamol, which is used in the treatment of headache, muscle ache, arthritis, backache, toothache, cold and fever.
Unistone Capital is the manager to the offer.
Equity shares of the company will be listed on the BSE and the NSE.
