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.

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.  

Venus Pipes & Tubes - Total Assets

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. 

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Venus Pipes & Tubes - Profit after tax

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.

ParticularsDetails
IPO Size₹165.42 Cr
Fresh Issue₹165.42 Cr
Offer for Sale (OFS)---
Opening dateMay 11, 2022
Closing dateMay 13, 2022
Face Value₹10 per share
Price Band₹310 to ₹326 per share
Lot Size46 Shares
Minimum Lot Size1 (46 shares)
Maximum Lot Size13 (598 shares)
Listing DateMay 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!

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