Venus Pipes -; Tubes sees continued demand from Retail Investors, NII book subscribed 2.59 times; Overall Issue Subscribed 4.42 times

13 May 2022 , 08:30 AM

The Initial Public Offering (IPO) of Gujarat-based Venus Pipes & Tubes Limited (“Company”), one of the leading Stainless Steel Pipes and Tubes Manufacturer, received bids of 1,57,02,790 shares against the offered 35,51,914 equity shares, at a price band of Rs 310-326, according to the data available on the stock exchanges. Overall the issue was subscribed 4.42 times on the second day of bidding.

Retail investors showed interest in the IPO as the portion set aside for them was subscribed 7.52 times. The reserved portion of non-institutional investors witnessed a subscription of 2.59 times. Qualified institutional investors portion was subscribed 0.36 times. The issue kicked off for subscription on Wednesday, May11 and will be open till Friday, May 13.

Venus Pipes and Tubes Limited is one of the growing stainless steel pipes and tubes manufacturer and exporter in the country having over six years of experience in manufacturing of stainless steel tubular products in two broad categories namely seamless tubes/pipes; and welded tubes/pipes. The company holds pride in supplying its wide product range to more than 20 countries internationally.
 
Venus Pipes recorded profit of Rs 23.63 crore on revenue of Rs 309.33 crore for the financial year 2020-21, against profit of Rs 4.13 crore on revenue of Rs 177.81 crore in previous year. For the nine months ended December 2021, profit stood at Rs 23.6 crore on revenue of Rs 276.77 crore.
 
SMC Capitals Limited is the sole book running lead managers and Kfin Technologies Limited is the registrar to the offer. The equity shares of the company are proposed to be listed on BSE and NSE.

Company Information

Venus Pipes & Tubes supplies products for applications in diverse sectors including chemicals, engineering, fertilizers, pharmaceuticals, power, food processing, paper, and oil and gas. The company has a production facility spread across 11 acres in Kutch, which houses two major sea ports, enabling easy logistics.  
 
The IPO is entirely a fresh issue of 50,74,100 equity shares, with no offer for sale component. The proceeds from its fresh issuance will be used to the tune of Rs 21.62 crore towards funding the capital expenditure towards setting up of proposed manufacturing unit, Rs 21 crore for funding working capital requirements of the company besides general corporate purposes.