The Venus Pipes Initial Public Offering (IPO) is about to hit Dalal Street because its most likely listing date is May 24, 2022. Experts in the stock market believe that Venus Pipes’ IPO will be successful because of the company’s recent track record of sustained growth. The grey market is signaling the listing gain one might anticipate from the IPO while allottees and market experts are busy calculating likely listing premium from the public offering worth 165.42 crore
Venus pipes IPO Overview
| Venus pipes IPO Dates | May 11, 2022 to May 13, 2022 |
| Listing date | May 24 2022 |
| Venus pipes IPO Price | ₹310 to ₹326 per share |
| Venus pipes IPO Face Value | ₹10 per share |
| Issue Size | 5,074,100 shares of ₹10 (Aggregating up to ₹165.42 Cr) |
| Lot size | 46 Shares |
| Fresh issue | 5,074,100 shares of ₹10 (Aggregating up to ₹165.42 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| Company Promoters | Megharam Sagramji Choudhary, Jayantiram Motiram Choudhary, Dhruv Mahendrakumar Patel and Arun Axaykumar Kothari are the company promoters. |
Venus pipes IPO – Industry Overview
India’s yearly GDP growth fell by 6.6% in FY 2021, compared to a 3.7% y-o-y growth the year before, as a result of the coronavirus pandemic and the ensuing lockdown. According to Mospi’s first projections, the Indian economy recovered strongly in FY 2022 and is projected to have expanded by 8.9%, despite the negative effects of the second wave of COVID-19 and related localized lockdowns. Despite supply chain disruptions brought on by COVID-19 restrictions, increasing freight costs, and container shortages, the nation is on track to exceed its export goal.
Omicron ba.2’s continued spread throughout the world and new external risks that have emerged as a result of the crises in Russia and Ukraine have the potential to slow the speed of economic recovery, particularly in the manufacturing sector. Businesses are under pressure to be profitable. India’s short-term growth will be impacted by foreign investors’ strong risk aversion, currency volatility and severe depreciation, a surge in commodity prices, and the ensuing increase in interest rates.
Venus pipes IPO – Company Overview
With over six years of experience manufacturing stainless steel tubular products in two broad categories—seamless tubes/pipes and welded tubes/pipes—Venus Pipes is one of India’s fastest-growing stainless steel pipe and tube manufacturers and exporters. Currently producing five product lines are: I stainless steel high precision & heat exchanger tubes; (ii) stainless steel hydraulic & instrumentation tubes; and (iii) stainless steel They provide products under the “Venus” brand for use in a variety of industries, including I engineering, (ii) fertilizers, (iii) pharmaceuticals, (iv) power, (v) food processing, (vi) paper, and (viii) oil and gas.
In close proximity to the ports of Kandla and Mundra, respectively, and on the Bhuj-Bhachau highway in Dhaneti (Kutch, Gujarat), Venus Pipes’ manufacturing facility (“Manufacturing Facility”) is strategically situated to help the company lower its logistical costs associated with the import and export of its products as well as the purchase of raw materials. With the newest product-specific machinery and technology, the Venus pipes Manufacturing Facility features distinct seamless and welded divisions with tube mills, pilger mills, draw benches, swaging machines, pipe straightening machines, TIG/MIG welding systems, plasma welding systems, etc.
The Venus Pipes Manufacturing Facility will be able to produce 10,800 MT annually as of February 28, 2022. Additionally, it has a warehousing facility in Ahmedabad and a storage facility at its manufacturing plant for retaining stocks of both raw materials and finished goods, which maintains the stability of operations.
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Venus pipes IPO Objectives
The company proposes to utilize the Net Proceeds raised through the Issue for the following objects:
- To meet long-term working capital requirements.
- General corporate purposes.
- Financing project costs for capacity growth, technology upgrades, operational cost optimization, manufacturing facility support, and backward integration for hollow pipe manufacturing.
Venus pipes Financials
Venus pipes Strengths
- International Accreditations and product approvals
- Specialized production of Stainless-Steel Pipes and Tubes
- Multi-fold demand of its Products
Venus pipes Weakness
- The company’s top 10 clients generated about 32% of its revenue in 9MFY22.
- Large and well-established rivals present increased rivalry.
- Has not signed any long-term contracts for the supply of goods or the acquisition of raw materials.
Company Contact Information
Venus Pipes & Tubes Limited
Survey No. 233/2 and
234/1, Dhaneti
Bhuj, Kachchh – 370020 Gujarat
Phone: +91 2836 232 183/84
Email: cs@venuspipes.com
Website: https://www.venuspipes.com/
Venus Pipes & Tubes IPO Registrar
KFin Technologies Limited
Phone: 04067162222, 04079611000
Email: venus.ipo@kfintech.com
Website: https://karisma.kfintech.com/
Venus Pipes & Tubes IPO Lead Manager(s)
- SMC Capitals Limited
