Venus Pipes IPO absolutely subscribed inside hours of opening: Here’s the whole lot you should know

Venus Pipes IPO: The preliminary public providing (IPO) of Venus Pipes and Tubes opened for subscription on Wednesday, May 11, 2022. The provide bought absolutely subscribed inside just a few hours of the opening and by the top of the primary day of bidding, it was subscribed 2.37 instances.

It obtained whole bids for 84,13,860 shares throughout each the inventory exchanges towards 35,51,914 shares on provide, information from National Stock Exchange (NSE) confirmed.

The Rs 165.41 crore Venus Pipes IPO can be out there for subscription until Friday, May 13, 2022, and the value band of the corporate has been fastened at Rs 310-326 per share.

The IPO of the Gujarat-based chrome steel pipes and tubes firm is totally a contemporary subject comprising a sale of fifty.74 lakh (50,74,100) fairness shares and there’s no offer-for-sale (OFS) portion. The complete proceeds from the problem can be used for financing the venture price in the direction of capability enlargement and backward integration for manufacturing of hole pipes, meet working capital necessities and for common company functions, in keeping with the main points given within the pink herring prospectus (RHP).

Venus Pipes and Tubes is a Gujarat-based chrome steel pipes and tubes producer and exporter having about six years of expertise within the manufacturing of chrome steel tubular merchandise in two broad classes – seamless tubes/pipes and welded tubes/pipes. Under the model identify Venus, it provides its merchandise for purposes in various sectors together with chemical substances, engineering, fertilizers, prescribed drugs, energy, meals processing, paper and oil and fuel.

Investors who want to subscribe to Venus Pipes IPO can bid in numerous 46 fairness shares and multiples thereafter. At the higher value band, they are going to be shelling out Rs 14,996 to get a single lot of Venus Pipes and Tubes. The shares can be listed on each BSE in addition to the National Stock Exchange (NSE).

The candidates additionally should observe that the cut-off time for UPI mandate affirmation is Tuesday, May 17, 2022, upto 12:00 pm. If they fail to take action then their utility will not be thought-about.

SMC Capitals is the e book operating lead supervisor to the provide whereas Kfin Technologies is the registrar of the problem.

Before heading into the IPO, Venus Pipes and Tubes on Tuesday raised over Rs 49 crore (Rs 49,62,32,636) from three anchor buyers in lieu of 15,22,186 fairness shares at Rs 326 every, information from the inventory exchanges confirmed.

The anchor buyers comprise of Nippon India Small Cap Fund, Kotak Mahindra Life Insurance Company and India SME Investments – Fund I.

The analysis crew at Anand Rathi Share and Stock Brokers in its IPO observe gave an “Avoid” suggestion to the provide.

Anand Rathi Research in its report famous, “The company is available at the upper end of the IPO price band at 21x its FY22 annualized earnings attributable to post issue equity demanding a market cap of Rs 6,617 million. At the upper end of the IPO price band, the issue is priced at a P/BV of 10.7x based on its NAV of Rs 30.5 as of March 31, 2021. The Company has delivered good growth in Sales over past few years along with increasing margin profile. However, Venus faces competition from its peers who hold substantial market share in the SS pipes and tubes market. When compared to its listed peers, Venus seems to be richly priced. We recommend an “Avoid” ranking to this IPO.”

The share allotment is prone to happen on Thursday, May 19, 2022, and the shares are anticipated to be listed on Tuesday, May 24, 2022, in keeping with the timeline given within the RHP.