Valiant Lab RI review - (May apply)

•    The company is engaged in manufacturing of bulk drug/ API etc.
•    It posted a setback for FY25 with lower top line with losses.
•    Considering losses for FY25, the issue is priced negatively.
•    The counter is well operated by operators and kept above the RI price.
•    Well-informed/cash surplus investors may park moderate funds for long term.

ABOUT COMPANY:
Valiant Laboratories Ltd. (VLL) is an Active Pharmaceutical Ingredient (“API”) / Bulk Drug manufacturing company having focus on manufacturing of Paracetamol. Bulk drugs/Active Pharmaceutical Ingredients (API) serve as raw materials for manufacturing finished dosage forms or formulations. Paracetamol (Scientific name: Acetaminophen or para-hydroxy acetanilide - C8H9NO2), is one of the most commonly taken analgesic worldwide and is recommended as the first-line therapy in pain conditions by the World Health Organization (WHO). 

Paracetamol has several applications such as usage in treatment of headaches, muscle aches, arthritis, back aches, toothaches, cold and fever. VLL manufactures Paracetamol in various grades such as IP/BP/EP/USP, as per the pharmacopeia requirements of customers. The offer document is silent on its human resources data.

ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 10862500 equity shares of Rs. 10 each at a fixed price of Rs. 75 per share to mobilize Rs. 81.47 cr. The RI is opening for subscription on July 28, 2025, and will close on August 08, 2025. The company is offering RI in the ratio of 1 for 4 to its eligible stakeholders as of the record date of July 19, 2025. 

The company is asking for full money on application for number of shares applied. Post allotment, shares will be listed on BSE and NSE. The company is spending Rs. 0.70 cr. for this RI process, and from the net proceeds, it will utilize Rs. 58.01 cr. for adjustment of promoter group loans towards right issue application money, Rs. 1.40 cr. for repayment of outstanding loans of promoters Dhanvallabh Ventures LLP, Rs. 1.80 cr. as capes, and Rs. 19.56 cr. for general corporate purposes.

The RI is solely lead managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue. 

Post RI, company’s current paid-up equity capital of Rs. 43.45 cr. will stand enhanced to Rs. 54.31 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 407.34 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total revenue/ net profit/ - (loss), of Rs. Rs. 182.06 cr.  / Rs. 0.32 cr. (FY24), Rs. 133.38 cr. / Rs. – (2.20) cr. (FY25). As of March 31, 2025, its NAV stood at Rs. 53.93 per share against Rs. 54.51 per share a year ago period

DIVIDEND POLICY:
The offer document is silent on its dividend policy. The company has not declared dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. 

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 543998 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 117.05 on July 17, 2025, and opened on an ex-right basis at Rs. 104.20 on July 18, 2025. Since then, it has marked a high/low of Rs. 107.00 / Rs. 92.70. The scrip last closed at Rs. 98.00 as of July 24, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 132.61 / Rs. 70.40. 

The promoters’ holding has been constant at 74.94% for the last three quarters ended with March 31, 2025. The counter is currently trading above its RI price to tempt investors.