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Venus Pipes & Tubes IPO: Issue 150% subscribed within few hours, retail investors show craze – News

Venus Pipes & Tubes IPO: The IPO of Venus Pipes & Tubes, a Gujarat-based company that makes stainless steel pipes and tubes, is getting a great response from investors and got oversubscribed within a few hours of the issue opening on the very first day. Retail investors are showing maximum interest in this issue and the share reserved for them is subscribed 2.41 times. According to the data available on BSE, this issue of Rs 165 crore is subscribed 134 percent. Its shares are at a premium (GMP) of Rs 24 in the gray market.

Category Wise Subscription Status

Qualified Institutional Investors (QIB) – 0.30 times
Non-Institutional Buyers (NII) – 0.23 times
Retail Investors – 2.41x
Total – 1.34 times
(Source: BSE, data till 12:36:00 PM)

Highlights of Venus Pipes & Tubes IPO

  • This IPO of Rs 165 crore will be open for subscription till May 13.
  • Under this issue, 50.74 lakh new equity shares will be issued and no share will be sold through offer for sale (OFS) window. Under this window the existing shareholders of the company reduce their holdings.
  • Face Value – Rs 10 per share
  • The lot size is 46 shares and the price band is Rs 310-326 per share i.e. according to the upper price of this price band, investors will have to invest at least Rs 14,996.
  • The allotment of shares can be final on May 19 and listing can happen on May 24.
  • 50 per cent of the issue is reserved for Qualified Institutional Buyers (QIBs), 35 per cent for retail investors and 15 per cent for non-institutional investors (NIIs).
  • The allotment of shares will be final on May 19 and listing will take place on May 24.
  • The money raised through the issue will be used to enhance the company’s capacity and for backward integration of hollow pipes. Apart from this, it will be used to meet working capital requirements and for general corporate purposes.

Details about the company

  • Venus Pipes & Tubes manufactures and exports Stainless Steel Pipes and Tubes. The company supplies its products under the Venus brand name to Chemical, Engineering, Fertilizer, Pharma, Power, Food Processing, Paper and Oil & Gas Sectors.
  • Apart from India, the company sells its products in 18 countries including Brazil, UK and Israel.
  • Talking about the financials of the company, there was a net profit (Profit after Tax) of Rs 3.75 crore in the financial year 2018-19 and it increased to Rs 4.13 crore in the next financial year 2019-20 and in the next financial year 2020-21. It quickly increased to Rs 23.63 crore. In the first nine months of the last financial year 2021-22, April-December 2021, the company had a profit of Rs 23.59 crore.
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