Venus Pipes and Tubes, whose initial public offering (IPO) was open for public subscription between May 11 and May 13, is likely to witness stock market listing on Tuesday (May 24). The IPO was subscribed 16.31 times on the final day of bidding, receiving bids for 5,79,48,730 shares against 35,51,914 shares on offer. The company’s unlisted shares on Sunday were trading at a premium of Rs 25 in the grey market.
Venus Pipes & Tubes IPO GMP
According to chanakyanipothi.com, the shares of Venus Pipes & Tubes are currently trading at a premium of Rs 25 in the grey market, over the upper band of Rs 326. It translates into a listing gain of five per cent. It means the shares in the grey market are trading at Rs 351 apiece. It also indicates the expected listing price of the company’s shares, as of now. The premium gets fluctuated based on the sentiments in the markets.
Venus Pipes & Tubes IPO: The Expert Take
Manoj Dalmia, founder and director of Proficient Equities, said, “Rising trends in commodity markets helped this company to post super performance and considering bright prospects, it is on an expansion spree. The issue was subscribed for 16 times. Investors can hold this with medium to long term perspective or book listing gains.”
Venus Pipes & Tubes IPO: Basis Details
Venus Pipes & Tubes Limited is a Gujarat-based manufacturer and exporter of stainless steel pipes and tubes. The company sells products in both domestic and international markets exporting to about 18 countries.
Being present in only one metal segment since inception, the company have gained segment expertise. The Company supply their Products across a diversified range of sectors and the demand for their product is also expected to increase with growth in downstream sector, said Anand Rathi brokerage house in its Venus Pipes IPO note.
The public issue, whose price band was Rs 310-326 per equity share, comprised the sale of 50.74 lakh equity shares of the company. Its total size was Rs 165.35 crore. Its shares are proposed to be listed on both NSE and BSE.
The IPO had a reservation of 35 per cent for retail investors, while qualified institutional buyers (QIBs) were able to participate in 50 per cent of the total issue size. Non-institutional investors were able to participate in the remaining 15 per cent of the IPO size.
The company proposes to utilise the proceeds from the public issue for financing the project cost towards capacity expansion and backward integration for manufacturing of hollow pipes, to meet working capital requirements and for general corporate purposes.
The company has about six years of experience in manufacturing of stainless-steel tubular products in two broad categories — seamless tubes & pipes; and welded tubes & pipes. Under the brand name ‘Venus’, the company supplies its products for applications in diverse sectors including chemicals, engineering, fertilisers, pharmaceuticals, power, food processing, paper and oil and gas. The company is one of the growing stainless-steel pipes and tubes manufacturers and exporters in India.
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