Valiant Laboratories IPO Listed at 15.82% premium

Valiant Laboratories Ltd had a very robust listing on 06th October 2023, listing at a smart premium of 15.82%, and rallying further from the listing price to hit the 5% upper circuit on the day of listing. While mainboard IPOs normally do not have a 5% upper circuit, Valiant Laboratories has been admitted to trading in the BE segment of the NSE, which is the trade to trade segment. Here the upper and lower circuit is at 5% by default. While the closing price on 06th October 2023 was above the IPO issue price for the day, it also closed comfortably above the listing price of the day. For the day, the Nifty closed 108 points higher while the Sensex closed with gains of 364 points. Both the Nifty and the Sensex have now seen two consecutive days of gains and this performance by Valiant Laboratories Ltd on the day of listing was largely helped by the robustness in the market sentiments overall.

The stock had seen a robust and strong subscription in the IPO. The subscription was 29.76X  overall and QIB subscription was at 20.83X. In addition, the retail portion had got subscribed 16.06X in the IPO while the HNI / NII portion was the pick of the lot will very healthy subscription of 73.64X. Hence the listing was expected to be fairly strong for the day. However, while the listing was strong, the performance strength got reinforced during the trading day as the stock hit the upper circuit of 5% at close. Here is the Valiant Laboratories Ltd listing story on 06th October 2023.

IPO subscription and pricing details

Valiant Laboratories IPO was fixed at the upper end of the band at ₹140 which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹133 to ₹140 per share. On 06th October 2023, the stock of Valiant Laboratories Ltd listed on the NSE at a price of ₹162.15, a strong premium of 15.82% over the IPO issue price of ₹140 per share. On the BSE also, the stock listed at ₹161, a premium of 15% over the IPO issue price of ₹140 per share.

How the stock of Valiant Laboratories Ltd closed on both exchanges

On the NSE, Valiant Laboratories Ltd closed on 06th October 2023 at a price of ₹170.25. That is a first day closing premium of 21.61% on the issue price of ₹140 and also a premium of 5% on the listing price of ₹162.15. In fact, the listing price turned out to be just above the low price of the day and the stock traded almost for the entire trading day above the opening listing price. The closing price on the NSE represented the high price of the day as it closed on the upper circuit filter. On the BSE also, the stock closed at ₹169.05. That represents a first day closing premium of 20.75% above the IPO issue price and also a premium of 5% above the listing price on the BSE. The closing price on the BSE also represented the high price of the day as it closed on the upper circuit filter. On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 after rallying higher at the upper circuit filter. In fact, the opening price turned out to be very near to the low price of the day on the NSE and exactly the low price on the BSE. The high price of the day exactly the closing price of the day, since the stock closed on 06th October 2023 with buyers and no sellers at the 5% upper circuit.

Price volume story on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 06th October 2023. On Day-1 of listing, Valiant Laboratories Ltd touched a high of ₹170.25 on the NSE and a low of ₹162.10. The premium to the listing price sustained through most part of the day. While the low price of the day was just marginally below the IPO opening price, the stock of Valiant Laboratories Ltd closed the day exactly at the 5% upper circuit. That may seem like a paradox, since mainboard IPOs normally do not have an upper circuit of 5%, unlike SME IPOs. However, in the case of Valiant Laboratories, the stock was admitted to trade on the NSE in the BE segment, which is the trade to trade segment on the exchange. Hence the circuit filter on either ways is 5% for the stock on listing day. If you look at the range of prices, the stock opening price turned out to be very near to the low point of the day while the closing price of the day was exactly at the upper circuit of the day for the stock; the 5% upper circuit. On Day-1 of listing, the Valiant Laboratories Ltd stock traded a total of 34.27 lakh shares on NSE amounting to value or turnover on the NSE of ₹56.60 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with serious buying emerging towards the end. The stock closed the day with pending buy orders of 2,61,505 shares on the NSE.

Price volume story on the BSE

Let us now turn to how the stock traversed on the Bombay Stock Exchange (BSE) on 06th October 2023. On Day-1 of listing, Valiant Laboratories Ltd touched a high of ₹169.05 on the BSE and a low of ₹161. The premium to the listing price sustained through most part of the day. While the low price of the day was exactly the IPO opening price, the stock of Valiant Laboratories Ltd closed the day exactly at the 5% upper circuit. That may seem like an anomaly, since mainboard IPOs normally do not have an upper circuit of 5%, unlike SME IPOs. However, in the case of Valiant Laboratories, the stock was admitted to trade on the BSE in the T segment, which is the trade to trade segment on the exchange. Hence the circuit filter on either ways is 5% for the stock on listing day. If you look at the range of prices, the stock opening price turned out to be the low point of the day while the closing price of the day was exactly at the upper circuit of the day for the stock; the 5% upper circuit. On Day-1 of listing, the Valiant Laboratories Ltd stock traded a total of 1.99 lakh shares on BSE amounting to value or turnover on the BSE of ₹3.29 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with serious buying emerging towards the end. The stock closed the day with pending buy orders on the BSE.

Market capitalization, free float, and delivery volumes

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session. The sharp spike in the Nifty and the Sensex for the second day in succession only help to smooth matters for the stock performance. That makes it a rather attractive stock after the strong listing on Friday. On the NSE, out of the total 34.27 lakh shares traded during the first day of trading, the deliverable quantity represented the entire 34.27 lakh shares or a deliverable percentage of 100% on the NSE, which is obvious as the stock trades on NSE in the BE segment or the trade to trade segment. By default, all the trades have to be deliveries only. Even on the BSE, out of the total 1.99 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 1.99 lakh shares representing 100% deliveries due to being part of the T2T group.

At the close of Day-1 of listing, Valiant Laboratories Ltd had a market capitalization of ₹734.52 crore with free-float market cap of ₹132.21 crore. Valiant Laboratories Ltd has issued capital of 4.345 crore shares with a par value of ₹10 per share.