Valiant Laboratories IPO: Closing subscription details
Valiant Laboratories Ltd has a face value of ₹10 per share while the price band for the book building IPO has been set in the band of ₹133 to ₹140 per share. The final price will be discovered within this band, through the process of book building. The fresh issue portion entailed the issue of 1,08,90,000 shares (108.90 lakh shares), which at the upper price band of ₹140 per share will translate into fresh issue size of ₹152.46 crore. Since there is no offer for sale component in the IPO, the fresh issue portion will also be the overall issue size. Hence, the overall issue size of Valiant Laboratories IPO will comprise the issue of 1,08,90,000 shares (108.90 lakh shares), which at the upper price band of ₹140 per share will translate into fresh issue size of ₹152.46 crore
While the QIB portion and the HNI / NII portion picked up traction on the last day, the overall journey was quite slow in the first 3 days of the IPO with most of the action on the last day only. In fact, the QIB portion got fully subscribed only on the penultimate day of the IPO while the HNI / NII portion got subscribed on the second day with the overall IPO also getting subscribed only on the penultimate day. Only the retail portion of the IPO got fully subscribed on the second day of the IPO itself. The table below captures the day-wise progress in IPO subscription.
|Day 1 (Sep 27,2023)||0.00||0.10||0.62||0.33|
|Day 2 (Sep 28,2023)||0.05||0.29||1.29||0.72|
|Day 3 (Sep 29,2023)||1.04||1.52||3.14||2.19|
|Day 4 (Oct 03, 2023)||20.83||73.63||16.05||29.75|
The IPO saw fairly steady and tepid flows on Day-1, Day-2, and Day-3 of the IPO but closed with relatively healthy subscription numbers at the close of Day-4. In fact, the company got fully subscribed only on the third and penultimate day of the IPO, with only the retail portion getting fully subscribed on the second day of the IPO. As per the combined bid details put out by the BSE at the close of Day-3, Valiant Laboratories Ltd IPO was subscribed 29.75X overall, with best demand coming from the HNI / NII segment, followed by the QIB segment and the retail segment in that order. In fact, the institutional segment and the HNI / NII segments saw some very good traction on the last day. The HNI portion did do well and a lot of the surge of funding applications and corporate applications did come in on the last day of the IPO. Retail portion was relatively timid, although it was fully subscribed on Day-2 of the IPO itself. Firstly, let us look at the details of overall allocation.
|Anchor Investor Shares Offered||32,66,970 shares (30.00%)|
|QIB Shares Offered||21,78,030 shares (20.00%)|
|NII (HNI) Shares Offered||16,33,500 shares (15.00%)|
|Retail Shares Offered||38,11,500 shares (35.00%)|
|Total Shares Offered||1,08,90,000 shares (100.00%)|
Having understood the allocation of shares across various categories, Let us quickly look at how the subscription data played out for the IPO at an overall level and at a more granular level.
As of close of 03rd October 2023, out of the 76.23 lakh shares on offer in the IPO, Valiant Laboratories Ltd saw bids for 2,268.14 lakh shares. This implies an overall subscription of 29.75X overall. The granular break-up of subscriptions was in favour of the HNI / NII investors followed by the QIB investors and the retail investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of QIB bids. Both the QIB and the NII bids picked momentum on the last day and added to its heft of the previous days. Here are the details of the category-wise subscription.
|Qualified Institutional Buyers (QIB)||20.83 Times|
|S (HNI) ₹2 lakhs to ₹10 lakhs||63.62|
|B (HNI) Above ₹10 lakhs||78.64|
|Non Institutional Investors (NII)||73.63 Times|
|Retail Individuals||16.05 Times|
Subscription status of QIB Portion
On 26th September 2023, Valiant Laboratories Ltd completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated through the process of book building. A total of 32,66,970 shares were allotted to the anchor investors. The allocation was done at the upper IPO price band of ₹140 per share (including premium of ₹130 per share) which resulted in an overall allocation of ₹45.74 crore. The anchors absorbed 30% of the total issue size of ₹152.46 crore.
The QIB portion (net of anchor allocation as explained above) had a quota of 21.78 lakh shares of which it has got bids for 453.61 lakh shares at the close of Day-4, implying a subscription ratio of 20.83X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Valiant Laboratories Ltd IPO subscription overall, the actual demand did turn to be quite robust for the IPO.
Subscription status of HNI / NII Portion
The HNI portion got subscribed 73.63X (getting applications for 1,202.81 lakh shares against the quota of 16.34 lakh shares). That is a relatively strong response at the close of Day-4 largely because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO, and that was visible as the overall HNI / NII portion added to its heft on the last day of the IPO. Apart from the QIB portion, even HNIs saw good traction on the last day.
Now the NII/HNI portion is reported in two parts viz. bids below ₹10 lakhs (S-HNI) and bids above ₹10 lakhs (B-HNI). The bids above the ₹10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above ₹10 lakh bid category got subscribed 78.64X while the below ₹10 lakh bid category (S-HNIs) got subscribed 63.63X. This is just for information and is already part of the overall HNI bids explained in the previous para.
Subscription status of Retail Individuals
The retail portion was subscribed just 16.05X at the close of Day-3, showing relatively strong appetite. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 38.12 lakh shares on offer, valid bids were received for 611.91 lakh shares, which included bids for 520.66 lakh shares at the cut-off price. The IPO is priced in the band of (₹133 to ₹140 per share) and has closed for subscription as of the close of Tuesday, 03rd October 2023.
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