Venus Pipes & Tubes said it has raised more than Rs 49 crore from anchor investors ahead of its first share sale, which will open for public subscription on Wednesday.
The company has decided to allocate 15,22,186 shares at Rs 326 per share to anchor investors, bringing the transaction size to Rs 49.62 crore, according to a circular uploaded on the BSE website.
Nippon India Small Cap Fund, Kotak Mahindra Life Insurance Company Ltd & India SME Investments – Fund I are the investors who participated in the anchor book.
The public offering involves the sale of 50.74 lakh new shares of the company and there is no offer for sale (OFS) component.
The public offering, with a price range of Rs 310-326 per share, will open from 11-13 May. At the higher end of the price range, the company is expected to shell out Rs 165.41 crore.
Proceeds from the issuance will be used to fund project costs for capacity expansion and backward integration for hollow tube manufacturing, to meet working capital requirements and for general corporate purposes.
Investors can bid on a minimum of 46 shares and then in multiples of 46.
The Gujarat-based company is a growing manufacturer and exporter of stainless steel tubes and pipes in India with about six years of experience in manufacturing stainless steel tubular products in two broad categories: seamless pipes; and welded pipes or tubes.
Under the Venus brand, the company supplies its products for applications in various sectors, including chemicals, engineering, fertilizers, pharmaceuticals, energy, food processing, paper and oil and gas.
For the fiscal year ended March 31, 2021, the operating income was Rs 309.33 crore, with a net profit of Rs 23.63 crore. For nine months ended December 31, 2021, the revenue from operations was Rs 276.76 crore and the net profit was Rs 23.59 crore.
SMC Capitals is the only book running lead manager for this matter. It is proposed to list the company’s shares on BSE and NSE.