Venus Pipes & Tubes Ltd. IPO
Venus Pipes & Tubes Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹326
Issue Price
Listing Price
₹335
Listing Price
Listing Gains
+₹9.00 (+2.76%)
Listing Gains
IPO Details
Bidding Dates
11 May - 13 May '22
Bidding Dates
Min. Investment
₹14,260
Min. Investment
Lot Size
46.00
Lot Size
Price Range
₹310 - ₹326
Price Range
Issue Size
157 Cr
Issue Size
Subscription Rate
- Retail Individual Investor19.04x
- Non-Institutional Investor15.69x
- Qualified Institutional Buyers12.02x
- Employees
About Company
Venus Pipes & Tubes is a major manufacturer and exporter of stainless steel pipes and tubes with a total production capacity of 10,800 MT per annum. The company broadly deals in the B2B supply. It manufactures stainless steel pipes and tubes in two broad categories – seamless and welded.
The company has one manufacturing plant located in Dhaneti (Kutch), Gujarat. The company exports its products to 18 countries, including the UK, Brazil, Israel, and European Union countries, etc.
The initial public offering (IPO) of Venus Pipes & Tubes Ltd will open for public subscription on May 11 and close on May 13. The IPO will comprise a fresh issue of 50.7 lakh shares. The allotment is expected to be finalised by May 19, and shares will be credited to allottees on May 23. Venus Pipes & Tubes is likely to debut on the exchanges on May 24.
The company plans to utilise the proceeds from the IPO to finance capacity expansion, backward integration for the manufacturing of hollow pipes and meet long-term working capital requirements, as per the Draft Red Herring Prospectus (DRHP) of the company filed with market regulator Securities & Exchange Board of India (SEBI)
Financial Snapshot - Venus Pipes & Tubes IPO
Venus Pipes & Tubes has reported a sharp growth in its revenue and net profit for the fiscal year 2021 as compared to the previous year. The company posted a net profit of Rs 23.63 crore and a revenue of Rs 312.03 crore in FY21. Check out the following data regarding the company’s financial performance that will help investors make a more informed decision.
| Financial Year | Total Assets | Total Revenues | Profit After Tax |
|---|---|---|---|
| March 2019 | Rs 79.12 crore | Rs 120.51 crore | Rs 3.75 crore |
| March 2020 | Rs 107.19 crore | Rs 179.32 crore | Rs 4.13 crore |
| March 2021 | Rs 137.54 crore | Rs 312.03 crore | Rs 23.63 crore |
Important Dates - Venus Pipes & Tubes IPO
| Application opens on | 11th May 2022 |
| Last date of application | 13th May 2022 |
| Date of Allotment | 19th May 2022 |
| Refund begins from | 20th May 2022 |
| Credit of shares to Demat | 23rd May 2022 |
| Listing date | 24th May 2022 |
Venus Pipes & Tubes IPO Grey Market Premium ( Data as per IPO Watch)
| Date | GMP |
|---|---|
| 11th May | Rs.25 |
| 10th May | Rs.35 |
Why should you invest in Venus Pipes & Tubes Ltd. IPO?
Venus Pipes & Tubes has strong growth plans and intends to expand its seamless capacity to 9.6 ktpa and welded capacity to 14.4 ktpa, in addition to 9.6 ktpa of new capacity towards backward integration to manufacture mother hollow pipes used as raw material for the seamless division.
- The company’s new product offerings and backward integration will help expand margins.
- Venus Pipes & Tubes is a key beneficiary of capex in the chemical and engineering sector.
- China export rebate cessation and BIS norms provide industry tailwinds.
Venus Pipes & Tubes IPO Noteworthy Highlights
Venus Pipes & Tubes’ total pipe/tube capacity increased to 10.8 ktpa in FY21 from 6.9 ktpa in FY19 with seamless increasing by 71% and welded by 50%.
The company’s both divisions are operating at near-full utilisation.
The demand trend has prompted the management of the company to onboard capacity expansion, more than doubling in FY23/24E.
The company proposes to utilise the proceeds from the fresh issue mainly to finance capital expenditure of Rs 105 crore and working capital needs of Rs 30 crore.
Venus Pipes & Tubes Ltd. IPO - SWOT Analysis
Strengths
Venus Pipes & Tubes has a multi-fold demand for its products and has a large diverse pool of customers. It has an experienced and qualified management team. The company also has international accreditations and product approvals.
Weaknesses
The company has not entered into long-term agreements with its customers for its products or even for the supply of raw materials with its suppliers. The company has derived and will continue to derive a significant portion of its income from its top 10 customers.
Venus Pipes & Tubes faces certain challenges because of its limited operating history in the highly competitive stainless steel pipes and tubes market.
Opportunities
Venus Pipes & Tubes has greater addressable market of stainless steel pipes and tube. Chemical sector is a major revenue driver for Venus Pipes & Tubes.
Threats
High competition, including from other large and established competitors and higher compliance to environmental laws. Sustained rise in raw material cost or slowdown in demand poses a significant threat to the company’s operations and financials.
A competitive analysis
Venus Pipes & Tubes has many competitors listed on exchanges. Some of these are APL Apollo Tubes, Ratnamani Metals & Tubes and Jindal SAW
| Company Name | Market Capitalisation(Rs.Cr) | 1-Year Return |
|---|---|---|
| APL Apollo Tubes | 24,402.35 | 49% |
| Ratnamani Metals & Tube | 11,025.71 | 23% |
| Jindal SAW | 2,852.21 | 2% |
How to apply for Venus Pipes & Tubes Ltd. IPO?
You can apply for the Venus Pipes & Tubes Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Venus Pipes & Tubes Ltd. click here.
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