Venus Pipes and Tubes IPO

Closed DRHP

Subscription Details

  • Open Date 11 May
  • Close Date 13 May
  • Lot Size 46
  • IPO Price Range ₹ 310 to ₹326
  • Min Investment ₹ 14996
  • Listing Exchange NSE,BSE

Venus Pipes and Tubes IPO Timeline

Open Date
11 May
Close Date
13 May
Basis of Allotment
19 May
Refunds
20 May
Credit to Demat Account
23 May
Listing Date
24 May

IPO Synopsis

Venus Pipes and Tubes IPO is opening on 11th May, 2022 and closes on 13th May, 2022. The IPO will be listed on 24th May, 2022 and allotment of shares in DEMAT would happen on 23rd May, 2022. The offer size comprises of sale of 50.74 lakh equity shares of the company, aggregating upto Rs.175-Rs 225 crores.
SMC Capitals is the sole book running lead managers to the issue. The equity shares of the company are proposed to be listed on BSE and NSE.
 

Objective of Venus Pipes & Tubes IPO

The proceeds from the issue will be used for:

•    Financing the project cost towards capacity expansion, technological upgradation, cost optimization of operations and support to the manufacturing facility and backward integration for manufacturing of hollow pipes
•    To meet long-term working capital requirements
•    General corporate purposes, subject to the applicable laws

Venus Pipes and Tubes IPO Subscription Status

  QIB NII Retail TOTAL
Day 1 0.36x 0.98x 4.10x 2.36x
Day 2 0.36x 2.59x 7.52x 4.42x
Day 3 12.02x 15.66x 19.04x 16.31x

About Venus Pipes and Tubes

It is one of the growing stainless steel pipes and tubes manufacturer and exporter in India having over six years of experience in manufacturing of stainless steel tubular products in two broad categories:

1. seamless tubes/pipes; and

2. welded tubes/pipes, under which there are currently five product lines being manufactured, namely,

  1. stainless steel high precision & heat exchanger tubes;
  2. stainless steel hydraulic & instrumentation tubes;
  3. stainless steel seamless pipes;
  4. stainless steel welded pipes; and
  5. stainless steel box pipes. 


Under the brand name “Venus”, the applications of products are available in diverse sectors including chemicals, engineering, fertilizers, pharmaceuticals, power, food processing, paper and oil and gas.


The raw material is procured based on market availability, pricing and quality through three main channels: 
(i)    domestic suppliers such as steel manufacturers, stockists and traders
(ii)    international suppliers from China, Indonesia, Malaysia and Singapore
(iii)    high 133 sea purchases

The products are sold both domestically and internationally either directly to customers or through traders/stockists and authorized distributors. They are exported to 18 countries including Brazil, UK, Israel and countries in the European Union. 
The company has an operational manufacturing unit, strategically located in Bhuj-Bhachau Highway which is close to both Kandla and Mundra and has a warehouse facility located in Ahmedabad.
 

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 309.33 177.81 118.75
EBITDA 34.78 11.64 8.29
PAT 23.63 4.13 3.75
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 137.54 107.19 79.12
Share Capital 8.73 8.73 8.73
Total Borrowings 37.50 42.61 29.42
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities 11.33 2.41 -6.66
Net cash from / (used in) investing activities -2.42 -12.36 -1.39
Net cash flow from / (used in) financing activities -9.19 10.02 7.71
Net increase (decrease) in cash and cash equivalents -0.28 0.07 -0.33


Peer Comparison

Name of the Company Total Revenue Basic EPS Nav Rs. per share PE RoNW%
Venus Pipes & Tubes Limited 312.00 18.04 30.48 NA 59.18%
Jindal Saw Limited 10,872.00 10.02 218.93 9.43 4.69%
Ratnamani Metal & Tubes Limited 2,341.50 59.77 425.35 32.06 13.90%


Key Points

  • Strengths

    1.    International Accreditations and product approvals
    2.    Specialised production of Stainless Steel Pipes and Tubes
    3.    Multi-fold demand of the products
    4.    Customer Diversification as products are sold domestically and internationally
     

  • Risks

    1.    Competition from other large and established competitors and failing to compete may lead to decline in demand for the products.  
    2.    Uncertainties in demand as there is no assurance of customers and suppliers continuing the business or purchases due to lack of long-term commitment
    3.    Various challenge put toward due to limited operating history in a highly competitive industry
    4.    Products maybe become obsolete due to a breakthrough in the development of technology or alternate products
    5.    May not be able to adequately protect its intellectual property and may be subject to claims that the firm infringe on the intellectual property rights of others
     

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the minimum lot size and investment required for the Venus Pipes and Tubes IPO?

Venus Pipes and Tubes IPO minimum lot size is 46 shares i.e. a minimum investment of ₹ 14,996.

What is the price band of the Venus Pipes and Tubes IPO?

The price band of Venus Pipes and Tubes IPO is ₹310 to ₹326 per share.

When does the Venus Pipes and Tubes IPO issue open and close?

Venus Pipes and Tubes IPO opens on 11th May and closes on 13th May 2022.

What is the size of Venus Pipes and Tubes IPO issue?

The fresh issue comprises of sale of 50.74 lakh equity shares of the company, aggregating upto Rs. Rs.165 crores.

Who are the promoters/key personnels of Venus Pipes and Tubes IPO?

Venus Pipes and Tubes is promoted by Megharam Sagramji Choudhary, Jayantiram Motiram Choudhary, Dhruv Mahendrakumar Patel and Arun Axaykumar Kothari.

When is the allotment date of Venus Pipes and Tubes IPO?

The allotment date of Venus Pipes and Tubes IPO is 19th May 2022.

When is the Venus Pipes and Tubes IPO listing date?

Venus Pipes and Tubes IPO will be listed on 24th May 2022.

Who are the book runners for Venus Pipes and Tubes IPO?

SMC Capitals is the lead manager to the issue.

What are the objective of the Venus Pipes and Tubes IPO?

The proceeds will be used:

1. Financing the project cost towards capacity expansion, technological upgradation, cost optimization of operations and support to the manufacturing facility and backward integration for manufacturing of hollow pipes
2. To meet long-term working capital requirements
3. General corporate purposes, subject to the applicable laws
 

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