Venus Tubes and Tubes IPO: The initial public offering (IPO) of Gujarat-based manufacturer and exporter of stainless steel pipes and tubes Venus Pipes and Tubes Limited was subscribed to 16.31 times as of the last day of bidding. The stock allotment process has already been completed, and winning bidders will likely receive credit in their demat accounts today, i.e. Monday, May 23. The issue will be released on Tuesday, May 24 and investors would like to see how the Venus Pipes and Tubes IPO performs on the exchanges. The Venus Pipes IPO was a new issue of Rs 165 crore, with a price range of Rs 310 to Rs 326 per share.
Venus Pipes and Tubes IPO GMP today
According to IPO Watch Venus Pipes IPO, the gray market premium (GMP) today is Rs 30 which is Rs 5 lower than the Sunday GMP of Rs 5. They said Venus Pipes IPO GMP has been doing rounds between Rs 40 and Rs 20 range for the latter week on the gray market. Market observers added that the decline in the IPO of Venus Pipes in the gray market premium can be attributed to negative stock sentiment, which continues for a number of reasons.
Market observers said the Venus Pipes IPO GMP today is Rs 30, meaning the gray market expects the Venus Pipes IPO to take place at around Rs 356 (Rs 326 + Rs 30), which is about 7 percent higher than the Rs price range. 310 to Rs 326 per share share. So, Venus Pipes IPO GMP today indicates that the public issuance will have a “moderate listing.”
What experts say about profits on the list
“Besides selling steel pipes and tubes, Venus Pipes & Tubes IPO is also involved in export. The company has experienced stable growth in recent years and the margin is also improving year on year. While market sentiments are negative these days, the Venus Pipes and Tubes IPO may be quoted at a premium of around 4-5 percent and investors can hold the stock for the medium to long term,” said Ravi Singh, vice president and chief research officer at Share India.
Venus Pipes and Tubes IPO: Objectives
Venus Pipes IPO has several objectives including financing the project costs for capacity expansion, technology upgrade, cost optimization of operations and production facility support and backward integration for hollow pipe production. The Venus IPO target is also to meet long-term working capital requirements; Proceeds from the Venus Pipes IPO will also be used for general corporate purposes, subject to applicable law
Venus Pipes and Tubes IPO: Valuation
According to Hem Securities, Venus Pipes and Tubes is launching the issuance at a price range of Rs 310-326 per share at a p/e multiple of 21x based on 9 months FY22 eps. The company with international accreditations and product approvals specializes in the production of stainless steel pipes and tubes with multiple demand for its products and customer diversification
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