May22 , 2022

Venus Pipes and Tubes IPO: Venus Pipes & Tubes IPO sails through within 90 mins; retail portion booked 2x



New Delhi: The Rs 165.42 crore initial public offering (IPO) of Venus Pipes and Tubes sailed through within the first 90 minutes of the bidding process on Wednesday.

The issue, which opened for subscription earlier today, can be subscribed till Friday, May 13. The company is selling its shares in a lot size of 46 equity shares in a price range of Rs 310-326 apiece.

According to the data from BSE, investors made bids for 39,83,186 equity shares or 1.12 times compared to 35,51,914 equity shares on offer for subscription by 11.45 am.

The quota for retail bidders was subscribed more than two times, whereas the portion for qualified institutional buyers was subscribed 30 per cent. Non institutional bidders’ portion was subscribed 17 per cent.

The company has reserved 50 per cent of the net offer for qualified institutional buyers (QIBs), whereas non institutional buyers (NIIs) will get 15 per cent allocation. Remaining 35 per cent shares will be given to the retail bidders.

Venus Pipes and Tubes is a manufacturer and exporter of stainless steel pipes and tubes in two broad categories – seamless tubes/pipes and welded tubes/pipes.

Venus Pipes and Tubes has one manufacturing plant which is located at Bhuj-Bhachau highway, Gujarat with an installed capacity of 10,800 MT per annum.

The company sells products in both domestic and international markets. It exports its products to 18 countries including Brazil, the UK, Israel and countries in the European Union.

Majority of the brokerages are positive on the issue and have suggested subscribing to it, tracking its sound financials, growth prospects, healthy margins and expansion plans. However, a few of them are wary over the valuations of the company.

“The company is backed with an increasing commodity price environment that is likely to reflect in their margins. It is also supported by the growth of the industry that it serves backed with favourable government policies,” said

Securities with a ‘subscribe’ rating on the issue.

A day before IPO, it garnered Rs 49.62 crore from anchor investors by allocating 15,22,186 shares at Rs 326 per share, the company said in a BSE circular.

Nippon India Small Cap Fund,

Mahindra Life Insurance Company Ltd & India SME Investments – Fund I are among the investors that participated in the anchor book.

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