IPO of Venus Pipes: Venus Pipes and Tubes’ initial public offering (IPO) opened for subscription on Wednesday, May 11, 2022. The offering was fully subscribed within hours of opening and by the end of the first day of auctions, it was subscribed 2.37 times.
It received total offers for 84,13,860 shares on both exchanges against 35,51,914 shares on offer, according to data from the National Stock Exchange (NSE).
The Rs 165.41 crore Venus Pipes IPO will be available for subscription until Friday, May 13, 2022, and the company’s price range has been set at 310-326 rupees per share.
The IPO of the Gujarat-based stainless steel pipe and tube company is entirely a new issue comprising a sale of 50.74 lakh (50,74,100) shares and there is no offering share for sale (OFS). 100% of the proceeds from the issuance will be used to fund the cost of the project for capacity expansion and upstream integration for hollow pipe manufacturing, to meet working capital requirements and to general business purposes, as detailed in the Red Herring Prospectus (RHP).
Venus Pipes and Tubes is a manufacturer and exporter of stainless steel pipes and tubes based in Gujarat. He has approximately six years of experience in manufacturing stainless steel tubular products in two major categories: Seamless Tube/Pipe and Welded Tube/Pipe. Under the Venus brand, it provides its products for applications in various industries, including chemicals, engineering, fertilizers, pharmaceuticals, energy, food, paper, oil and gas.
Investors wishing to subscribe to the Venus Pipes IPO can bid in a large number of 46 shares and multiple thereafter. At the higher price bracket, they will shell out Rs 14,996 to get a single bundle of Venus pipes and tubes. The shares will be listed on both the BSE and the National Stock Exchange (NSE).
Applicants should also note that the cut-off time for UPI warrant confirmation is Tuesday, May 17, 2022, until 12:00 p.m. Failure to do so may result in their application not being considered.
SMC Capitals is the lead manager of the offering while Kfin Technologies is the registrar of the issuance.
Ahead of embarking on the IPO, Venus Pipes and Tubes on Tuesday raised more than Rs 49 crore (Rs 49,62,32,636) from three lead investors instead of 15,22,186 shares at Rs 326 each, data from scholarships show.
The main investors are Nippon India Small Cap Fund, Kotak Mahindra Life Insurance Company and India SME Investments – Fund I.
The research team of Anand Rathi Share and Stock Brokers in its IPO memo gave an “Avoid” recommendation to the offering.
Anand Rathi Research in its report noted, “The company is available at the upper end of the IPO price range at 21x its FY22 annualized earnings attributable to post-issue equity requiring capitalization. share price of 6,617 million rupees. At the upper end of the IPO price range, the issue is priced at a P/BV of 10.7x based on its net asset value of Rs 30.5 as of March 31, 2021. The company has recorded good sales growth over the past few years with an increasing margin profile. However, Venus faces competition from its peers who hold substantial market shares in the SS pipe and tube market. Compared to its listed peers, Venus seems to have a high price. We recommend an “Avoid” rating to this IPO. »
The allotment of the shares is expected to take place on Thursday, May 19, 2022 and the shares are expected to list on Tuesday, May 24, 2022, according to the timetable indicated in the RHP.