VALIANT LABORATORIES LIMITED

VALIANT LABORATORIES LIMITED - IPO DETAILS 

Company Overview 

Valiant Laboratories, established in 1980, specializes in the production of Active Pharmaceutical Ingredients (APIs) and Bulk Drugs, with a primary focus on manufacturing Paracetamol. Paracetamol is a globally recognized pain reliever and fever reducer recommended as the first-line treatment for various pain conditions and fever by the World Health Organization (WHO). 

The company manufactures Paracetamol in various pharmacopeia grades, such as IP, BP, EP, and USP, offering different forms like powder, fine powder, dense, and free-flowing to meet a wide range of customer needs. Valiant Laboratories operates exclusively from a single manufacturing facility located in Maharashtra, boasting an impressive annual production capacity of 9,000 metric tons. 

Regarding its revenue structure, a significant portion, approximately 99.35%, is derived from the sales of its manufactured products, with the remaining 0.65% originating from other income sources. 

Objective of the IPO 

Here are a few quick reasons why Updater Services Limited going public:  

1. The investment in VASPL is directed towards partially financing the capital expenditure needed to establish a specialty chemicals manufacturing facility in Saykha Industrial Area, Bharuch, Gujarat. This facility is commonly referred to as the Proposed Facility. 

2. Additionally, the investment in VASPL is intended to provide funding for the subsidiary's working capital requirements. 

3. Allocating funds for overarching corporate needs and objectives. 

Company Financials 

Key Performance Indicator 

Pros 

1. The company's manufacturing facility is strategically situated in close proximity to the Jawaharlal Nehru Port Trust (JNPT) for streamlined import and export operations. This strategic location offers a significant cost and logistical advantage, enhancing the efficiency of the company's international trade activities. 

2. The company lies in its strategic efforts to minimize its reliance on imported raw materials. Over the years, the company has effectively reduced its dependence on imports of Para Amino Phenol from China and Cambodia, decreasing it from 78.06% in Fiscal 2020 to a mere 11.92% in Fiscal 2023. This substantial reduction underscores the company's capacity to adapt and optimize its supply chain operations. 

3. Valiant Laboratories boasts a diversified portfolio that encompasses various sectors, including pharmaceuticals, agrochemicals, as well as dyes and pigments. This broad spectrum of industries reduces the company's dependency on any single sector, showcasing its adaptability and resilience. 

4. Valiant Laboratories' business segment centers its attention on specialty chemicals characterized by high profit margins. This strategic focus is complemented by a robust commitment to research and development, which contributes to enhanced profitability, fosters customer loyalty, and facilitates product differentiation within the market. 

Cons 

1. The company operates as a single-product manufacturing entity, primarily focusing on the production of paracetamol. This specialization means that any surge in demand for alternative products such as ibuprofen and diclofenac could potentially have a negative impact on its business. 

2. Valiant Laboratories faces a challenge related to the limited number of suppliers for its raw materials, with a significant concentration of these suppliers in the western region of India. This concentration increases the company's vulnerability to potential disruptions in its supply chain, as any issues affecting these suppliers could have a significant impact on Valiant Laboratories' operations.  

3. Valiant Laboratories relies heavily on a small number of customers for a substantial portion of its revenue. Any difficulty in retaining its current customer base could potentially result in adverse consequences for its sales and hinder its prospects for business growth. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”