Shares of Venus Pipes & Tubes Limited will debut on Dalal Street on Tuesday. Venus Pipes & Tubes shares will be listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on May 24 at 10:00 AM. The IPO of Venus Pipes & Tubes (IPO) received a decent response from investors during the subscription period.
Venus Pipes & Tubes IPO open from registration May 11-13. The Gujarat-based manufacturer and exporter wanted to raise Rs 165.42 crore from its tender offer. The price band has been set at Rs 310-326 per share. The Venus Pipes IPO involves the sale of 50.74 lakh new shares of the company. There is no component for sale (OFS).
Venus Pipes & Tubes IPO was subscribed at 16.31 during the offering period. The quota allocated to the Qualified Institutional Buyers (QIBs) was subscribed 12.02 times. The portion reserved for non-institutional investors (NIIs) was booked 15.66 times. Retail investors booked their share 19.04 times.
The gray market premium of Venus Pipes & Tubes was Rs 45 prior to listing, according to market observers on Tuesday. The unlisted shares of Venus Pipes traded at Rs 371 on the gray market, up 14 percent from the top of the issue price. The strong premium in the gray market and decent investor response point to a positive listing for the Venus Pipes & Tubes IPO on May 24.
Venus Pipes is a pipe and tube manufacturer that focuses exclusively on the manufacture of welded and seamless pipes in a single metal category, namely stainless steel. The company currently produces five product lines, namely a) high precision stainless steel tubes and heat exchangers, b) stainless steel hydraulic tubes and instrumentation tubes, c) stainless steel seamless tubes, d) stainless steel welded tubes, e) stainless steel cabinet tubes.
About the valuation of the Venus Pipes IPO, 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 9 months FY22 eps.”
Venus Pipes & Tubes IPO Listing Today: Listing Strategy For You
Commenting on the stock gains, Ravi Singh, vice president and head of research at Share India, said: “In addition to selling steel pipes and tubes, Venus Company is also involved in exports. The company has experienced stable growth in recent years and the margin is also improving year on year.Although market sentiments are negative these days, Venus ipo may be trading at a premium of around 4-5 percent and investors can hold the stock for the medium to long term.
Manoj Dalmia, founder and director of Proficient Equities, said: “The company does business in both domestic and global commodities. It has been able to report sustainable business growth in recent years and margin pressures are also easing year on year. So the company’s fundamentals are quite strong and it could be trading positively regardless of the mood in the secondary market.”
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