Venus Pipes IPO: On the last day of bidding, the IPO of Venus Pipes & Tubes Ltd. was subscribed to 7.4 times by the afternoon of May 13. of the issuance, reducing the size of the offering from 50.74 to 35.51 lakh shares. Anchor investors are bidding at the high end of the Venus Pipes IPO price band of Rs 310-326 per share. The IPO of Venus Pipes and Tubes Company is a brand new offering consisting of a sale of 50.74 lakh (50,74,100) shares and there is no offer-for-sale (OFS) portion. The entire proceeds of the issuance will be used to fund the project costs for capacity expansion and backward integration for hollow tube manufacturing, meeting working capital requirements and general corporate purposes, according to details in the red herring prospectus (RHP).
Venus Pipes IPO: Subscription Status
Retail investors have bid 11.85 times the shares reserved for them, while on the last day the share of non-institutional investors was subscribed 4.84 times. Qualified institutional buyers subscribed 1.54 times or 15.64 lakh shares of their quota of 10.14 lakh shares.
Venus Pipes has reserved half of its offerings for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 35 percent for retail investors.
Venus Pipes IPO: Lot Size
Investors wishing to subscribe to the Venus Pipes IPO can bid in a large number of 46 shares and then multiples. At the higher price range, they will shell out Rs 14,996 to get a single lot of Venus Pipes and Tubes. The shares will be listed on both BSE and the National Stock Exchange (NSE).
The applicants should also note that the closing time for UPI mandate confirmation is Tuesday, May 17, 2022 to 12:00 noon. If they fail to do so, their application cannot be processed.
Venus Pipes IPO: GMP Today
According to market observers, Venus Pipes shares are available today at a premium (GMP) of Rs 32 in the gray market, up from Rs 24 yesterday. The company’s shares are expected to be listed on the BSE and NSE stock exchanges on Tuesday, May 24, 2022.
Venus Pipes IPO: What Analysts Are Saying?
Hem Securities said: “The company is launching the issuance at a price range of Rs 310-326 per share at a p/e multiple of 21x based on 9Months FY22 eps. 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. Therefore, we recommend that you “Subscribe” to this issue.
Anand Rathi Research noted in its report, “The company is available at the high end of the IPO price band at 21x its annual profit in FY22 attributable to post-issuance shares demanding a market cap of Rs 6,617 million. IPO price band, the issue will be priced at a P/BV of 10.7x based on the NAV of Rs 30.5 as of March 31, 2021. The company has achieved good sales growth in recent years with an increasing margin profile. However, Venus has face competition from its peers who have significant market share in the stainless steel pipe and tube market.Compared to its listed peers, Venus appears to be richly priced.We recommend an ‘Avoid’ rating for this IPO. ‘
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