Venus Pipes and Tubes, whose initial public offering (IPO) was open to public subscription between May 11 and May 13, is likely to go public on Tuesday (May 24). The IPO was subscribed 16.31 times on the last offer day, with offers being received for 5,79,48,730 shares against 35,51,914 shares offered. The company’s privately held shares traded at a premium of Rs 25 in the gray market on Sunday.
Venus Pipes & Tubes IPO GMP
According to chanakyanipothi.com, shares of Venus Pipes & Tubes are currently trading at a premium of Rs 25 in the gray market, above the upper band of Rs 326. This translates into a five percent gain in listing. It means the shares are trading in the gray market at Rs 351 each. It also indicates the expected listing price of the company’s shares, as of now. The premium fluctuates based on market sentiment.
Venus Pipes & Tubes IPO: The Expert Take
Manoj Dalmia, founder and managing director of Proficient Equities, said: “Rising trends in the commodities markets have helped this company to deliver a super performance and given the good prospects it is expanding. The number has been subscribed 16 times. Investors can hold on to this with a medium to long-term perspective or book profits.”
Venus Pipes & Tubes IPO: Basic 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 and exports to approximately 18 countries.
Present in only one metal segment since its inception, the company has built up segment expertise. The company supplies its products in a diversified array of sectors and demand for their product is also expected to increase with growth in the downstream sector, brokerage firm Anand Rathi said in its Venus Pipes IPO note.
The public offering, the price range of which was Rs 310-326 per share, involved the sale of 50.74 lakh shares of the company. The total size was Rs 165.35 crore. It is proposed to list its shares on both NSE and BSE.
The IPO had a 35 percent reserve for retail investors, while qualified institutional buyers (QIBs) could participate in 50 percent of the total issuance size. Non-institutional investors could participate in the remaining 15 percent of the IPO size.
The company proposes to use the proceeds of the public offering to fund the project costs for capacity expansion and backward integration for hollow tube manufacturing, to meet working capital requirements and for general corporate purposes.
The company has about six years of experience in the production of stainless steel tubular products in two broad categories: seamless pipes and tubes; and welded pipes and tubes. Under the brand name ‘Venus’, the company supplies its products for applications in, among others, chemistry, technology, fertilizers, pharmaceuticals, energy, food processing, paper and oil and gas. The company is one of the growing manufacturers and exporters of stainless steel pipes and tubes in India.
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