Venus Pipes & Tubes IPO: Venus Pipes & Tubes Limited will open its initial public offering (IPO) for public subscription on Wednesday, May 11, 2022. The company has fixed the price band at Rs 310-326 per equity share. The issue will close on Friday, May 13, 2022. According to the RHP filed by the company, the issue entirely consists of the issuance of 50,74,100 fresh equity shares with a face value of Rs 10 each. As per Red herring Prospectus of Venus Pipes & Tubes IPO, bidding for anchor investors will begin on May 10, 2022.
Venus Pipes & Tubes IPO: Price Band and Lot Size
Venus Pipes & Tubes has fixed its IPO price band at Rs 310-325 apiece. Investors can bid for a minimum of 46 equity shares and then in multiples thereafter.
Venus Pipes & Tubes IPO: Objective
Proceeds from the public issue will be used for financing the project cost towards capacity expansion and backward integration for manufacturing of hollow pipes, to meet working capital requirements, and for general corporate purposes.
Venus Pipes & Tubes IPO: Reserved Portions
The company has reserved 50 per cent of equity shares for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get 15 per cent equity shares. Retail bidders will get remaining 35 per cent equity shares.
Venus Pipes & Tubes IPO: Financials
It reported a profit after tax (PAT) of Rs 23.63 crore with a topline of Rs 312.03 crore in the financial year 2021-22. For the nine months ended, the company reported a net profit of Rs 23.6 crore with a revenue of Rs 278.28 crore.
Venus Pipes & Tubes IPO GMP
According to the IPO Watch, the shares of Venus Pipes & Tubes are currently trading at a premium of Rs 35 in the grey market, over the upper band of Rs 326. It translates into a listing gain of 10 per cent. It means the shares in the grey market are trading at Rs 361 apiece. The premium gets fluctuated based on the sentiments in the markets. However, stock market experts suggested to investors that GMP is unofficial data, which is non-regulated. So, those who follow GMP are advised to go through the financials of the company as well because the balance sheet of the company will give a better picture of the company’s fundamentals.
Venus Pipes & Tubes IPO: About the Company
Venus Pipes & Tubes has about six years of experience in manufacturing of stainless-steel tubular products in two broad categories – seamless tubes & pipes; and welded tubes & pipes. The company under the brand name ‘Venus’ supplies its products for applications in diverse sectors including chemicals, engineering, fertilizers, pharmaceuticals, power, food processing, paper, and oil and gas.
SMC Capitals is the sole book-running lead manager to the issue, whereas Kfin Technologies is the registrar to the issue. The equity shares of the company are proposed to be listed on BSE and NSE.
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