Venus Pipes And Tubes The initial public offering (IPO) of Rs 165 crore will be open for public subscription from tomorrow and will end on Friday, May 13. Bid has opened for anchor investors today. The firm has fixed a price band of 310-326 per share for its three-day issue.
The public issue involves the sale of 50.74 lakh new equity shares of the company and does not have an offer-for-sale (OFS) component. At the upper end of the price band, the company is expected to mop-up 165 crore through this IPO,
There has been no gray market activity today with respect to the Venus Pipes shares. The company’s shares are expected to be listed on the stock exchanges BSE and NSE on Tuesday, May 24, 2022.
The proceeds from the public issue will be used to finance the project cost, for capacity expansion and backward integration for manufacturing of hollow pipes, to meet working capital requirements and for general corporate purposes.
The Gujarat based company is Stainless-Steel Pipes & Tubes manufacturer and exporter in India, engaged in manufacturing of Stainless-Steel Tubular products in two broad categories, Seamless Tubes & Pipes; and welded tubes and pipes.
“Venus has moderate debt 38 crores on its balance sheet, which is approximately 0.8x debt/equity. In addition, Venus’ FY21 ROCE appears significantly higher due to strong asset utilization and improved profitability. Backward integration helps with better margins but increases the asset base thereby reducing asset turn,” Wealthstreet said in a note.
For the financial year ended 31st March, 2021, the revenue from operations was 309 crores and its net profit was 23.6 crores. For the nine months ended December 31, 2021, revenue from operations at Venus Pipes was lower 276 crores and its net profit was 23 crores.
“Venus increased its capacity in FY 2019-21, which has driven 60% revenue CAGR in this period. The return ratio has improved strongly with strong asset utilization and improved profitability. Venus Pipes plans to double the capacity to meet the growing demand, enrich the product portfolio, enhance operational efficiency through backward integration and raise the required funds through the IPO route,” said Antique Stock Broking.