Venus Pipes and Tubes — here’s all you need to know about before applying for its IPO

May 12, 2022

By: Kritti Bhalla

Venus Pipes and Tubes’s offering

The initial public offering (IPO) of Venus Pipes and Tubes kicked off for subscription on Wednesday (May 11). The company intends to raise ₹165.42 crore through fresh issue of 50.74 lakh equity shares.

Credit: Canva

Price band, minimum bid

The IPO will run till Friday and investors could buy each share at a price band of ₹310-326 apiece. Investors can make bids in multiples of 46 equity shares., which will cost up to ₹14,996 per lot of 46 shares.

Credit: Canva

Subscription rate to date

Venus Pipes and Tubes’ shares were fully subscribed within the first 90 minutes on Day 1. They have currently been subscribed four times the issue, with retail investors subscribing to seven times their allotted issues.

Credit: Canva

GMP

The grey market premium (GMP) — the premium at which the shares are being sold in the grey market — of Venus Pipes and Tubes’ shares was at ₹32 at 4:30 pm on May 12.

Credit: Canva

What do analysts say?

Most analysts and stock brokerages have been positive about Venus Pipes and Tubes’ offering. Reliance Securities and HEM Securities have given it a “subscribe” rating due to its healthy financial statements, whereas Marwadi Financial Services has asked the investors to stay away from the stock due to negative operating cash flows.

Credit: Canva

What does Venus Pipes and Tubes do?

Venus Pipes and Tubes is a certified stainless steel pipe and tube manufacturer located in India. The company has one manufacturing plant located at Bhuj-Bhachau highway, Gujarat with an installed capacity of 10,800 metric tonne per annum. The company sells products in both domestic and 18 international markets including Brazil, United Kingdom, Israel and more.

Credit: Canva

Financial details

The company reported a net profit of ₹23.6 crore in the fiscal year 2022 as its revenue touched ₹312 crore. Its revenue was at ₹179 crore in the previous year while net profit was at ₹4 crore.

Credit: Canva

What does it plan to do with this capital?

Venus Pipes and Tubes will use this capital to fulfill its long-term working capital requirements, financing projects for capital growth, upgrading technology and general corporate purpose.

Credit: Canva

Anchor round

The company raised ₹49.60 crore from anchor investors on Tuesday by allocating 15,22,186 shares at ₹326 per shares Nippon India Small Cap Fund, Kotak Mahindra Life Insurance Company Limited and India SME Investments - Fund I are among the investors that participated in the anchor book.

Credit: Canva

Paradeep Phosphates lists at a 9% premium as Sensex and Nifty trade in the green