Venus Pipes & Tubes IPO Review: Venus Pipes & Tubes initial public offer (IPO) will open for subscription on May 11th, 2022, and close on May 13th, 2022. The stainless steel manufacturer is looking to raise Rs.165.45 crores through the IPO. Keep Reading to find out.
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About Venus Pipes & Tubes
Based in Gujarat, Venus Pipes & Tubes is involved in the manufacture and export of stainless steel pipes and tubes. The company has been associated with the stainless steel industry for over 15 years now.
The company operates through one manufacturing plant in Dhaneti, Gujarat. This plant has an installed capacity of 10,800 MT per annum.
Their stainless steel tube products can be divided into 2 categories namely seamless tubes/pipes and welded tubes/pipes. Their products under this category include stainless steel high precision & heat exchanger tubes, stainless steel hydraulic & instrumentation tubes, stainless steel seamless pipes, stainless steel welded pipes and stainless steel box pipes.
The company also exports its products to many countries. These include Brazil, the UK, Israel and 15 others some of which also form part of the European Union.
When listed the company will compete in an industry which has several competitors in India. These include
Venus Pipes & Tubes IPO – Grey Market Premium
Shares of Venus Pipes & Tubes traded at a 10.7% premium on May 8th. The shares were trading at Rs 361. This gives a premium of Rs 35 over the cap price of Rs 326.
Key IPO Information
The promoters of the company include Megharam Sagramji Choudhary, Jayantiram Motiram Choudhary, Dhruv Mahendrakumar Patel and Arun Axaykumar Kothari. They have appointed SMC Capital Ltd. as the lead manager for the issue. KFin Technologies has been appointed as the registrar for the issue.
| Particulars | Details |
|---|---|
| IPO Size | ₹165.42 Cr |
| Fresh Issue | ₹165.42 Cr |
| Offer for Sale (OFS) | --- |
| Opening date | May 11, 2022 |
| Closing date | May 13, 2022 |
| Face Value | ₹10 per share |
| Price Band | ₹310 to ₹326 per share |
| Lot Size | 46 Shares |
| Minimum Lot Size | 1 (46 shares) |
| Maximum Lot Size | 13 (598 shares) |
| Listing Date | May 24, 2022 |
Purpose of the IPO
Funds raised from the IPO will be used for the following purposes
- To meet long term working capital requirements
- Financing the project cost towards capacity expansion and backward integration for manufacturing of hollow pipes
- General corporate purposes
In Closing
In this article, we covered the Venus Pipes & Tubes IPO Review. The Initial Public Offering opens on May 11th and closes on May 13th. However, the company will not be receiving any proceeds from the IPO as it is an offer for sale.
For investors, it can be a good opportunity to look into the company and apply for the IPO after analysing the prospects and strengths. Let us know what you think about the Venus Pipes & Tubes IPO Review in the comments below? Happy Investing!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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