Venus Pipes IPO | Motilal Oswal

Venus Pipes and Tubes Ltd IPO

Opening Date

11, May2022

Closing Date

13, May 2022

Face Value

₹1 per equity share

IPO Price Band

₹310 to ₹326 per equity share

Minimum Order Quantity

46 Shares

Issue Size

₹165.42 Crs

 

The year 2021 proved to be a beneficial year for primary markets, wherein more than 63 IPOs went public, raising more than 1 Lakh Crore. It is estimated that approximately 1 million investors participated in this IPO rally. The largest IPO was from One97 Communications (PAYTM) for Rs 18,300 crore — the largest offering historically in India. New-age technology brands like Paytm, Zomato, Nykaa and Policybazaar, released initial public offerings (IPOs) in India during 2021 even as the stock market key indices leaped to new highs shrugging off COVID concerns. Coming out now, is the offering from Venus Pipes & Tubes IPO. Let’s take a quick look at this offering..

About Venus Pipes  -

Incorporated in 2015, Venus Pipes is manufacturer and exporter of stainless steel pipes and tubes in two broad categories — seamless tubes & pipes; and welded tubes & pipes. Under the brand name “Venus”, the applications of products are available in diverse sectors including chemicals, engineering, fertilizers, pharmaceuticals, power, food processing, paper and oil and gas

The company has an operational manufacturing unit, strategically located in Bhuj-Bhachau Highway which is close to both Kandla and Mundra and has a warehouse facility located in Ahmedabad.

Venus Pipes & Tubes Ltd IPO details -

Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - Venus Pipes & Tubes  Ltd IPO date and its share price.

Venus Pipes & Tubes  Ltd IPO date -

According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from 11th, May and will be available for subscription until 13, May 2022.

Venus Pipes & Tubes  Ltd IPO issue size -

The total issue size of the latest Venus Pipes & Tubes IPO is declared to be ₹165.42 crores. This is a total fresh issue of 5,074,100 shares.

75% of the offer is for QIBs (qualified institutional buyers), 10% for retail investors, and the balance 15% for NIBs (non-institutional investors).

Venus Pipes & Tubes  Ltd IPO share price

The price band of the company’s upcoming IPO is declared to range between ₹310 to ₹326 per equity share

Venus Pipes & Tubes  Ltd IPO listing

Since the IPO of Venus Pipes & Tubes  Ltd IPO is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)

Venus Pipes & Tubes  Ltd IPO objectives

According to the Red Herring Prospectus filed by the company, it aims to utilize the Net Proceeds towards the following objects:

  • Financing project costs for capacity growth, technology upgrades, operational cost optimization, manufacturing facility support, and backward integration for hollow pipe manufacturing
  • To meet long-term working capital requirements
  • General corporate purposes

Venus Pipes & Tubes Ltd Key Strengths

  • Specialized focus on manufacturing of welded and seamless pipes in a single metal category, i.e., stainless steel.
  • International Accreditations and product approvals
  • Multi-fold demand of their products ensures a strong order book on year on year basis
  • Well diversified customer base both in domestic as well as international markets

Venus Pipes & Tubes Ltd IPO risks

  • The Stainless steel pipes and tubes market are highly competitive
  • Uncertainties seen in the demand and prices of the steel and steel products
  •  Lack of long term agreement with customers as well as with suppliers

Conclusion

With the manufacturing sector getting strong, you might be surely excited to experience how the Indian Stock Market reacts to this emerging sector. If you wish to become a part of this growing Indian Market, you will need to have an online demat and trading account, which will help you get shares of your favourite companies. To get an online DEMAT account for Free*, all you have to do is sign-up with Motilal Oswal and get started.

If you already have an existing account, you can  start your online trading and invest in the upcoming IPO's.

With a plethora of companies coming forward with their own IPOs in quick succession, you can keep a track of all the upcoming IPOs by regularly following our IPO calendar.

 

 

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