Venus Pipes IPO: Opens on May 11; find the key details before subscribing

Venus Pipes & Tubes Limited will open its initial public offering (IPO) for public subscription on Wednesday, May 11, 2022. The company has fixed the price band at Rs 310-326 per equity share. The issue will close on Friday, May 13, 2022.

Investors can bid for a minimum of 46 equity shares and then in multiples thereafter. In terms of the rupee value, an investor can bid for a minimum amount of Rs 14,996 for one lot, while the maximum bid can be made for Rs 1,94,948 for 13 lots.

According to the RHP filed by the company, the issue entirely consists of the issuance of 50,74,100 fresh equity shares with a face value of Rs 10 each, aggregating to Rs 165.41 crore.

The company has reserved 50 per cent of equity shares for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get 15 per cent of equity shares. Retail bidders will get the remaining 35 per cent equity shares.

Proceeds from the public issue will be used for financing the project cost towards capacity expansion and backward integration for manufacturing of hollow pipes, to meet working capital requirements and for general corporate purposes.

SMC Capitals is the sole book-running lead manager for the issue, whereas Kfin Technologies is the registrar of the issue.

The tentative date for the announcement of share allocation is May 19, 2022. The likely date for share listing is May 24, 2022. The equity shares of the company are proposed to be listed on BSE and NSE.

Venus Pipes & Tubes is one of the growing stainless-steel pipes and tubes manufacturers and exporters in India having over six years of experience in manufacturing stainless-steel tubular products in two broad categories:

(i) Seamless tubes/pipes; and

(ii) Welded tubes/pipes, under which the company is currently manufacturing five product lines, namely (a) Stainless steel high precision & heat exchanger tubes; (b) Stainless steel hydraulic & instrumentation tubes; (c) Stainless steel seamless pipes; (d) stainless steel welded pipes; and (e) stainless steel box pipes ("Products").

Under our brand name "Venus", the supply its products for applications in diverse sectors including (i) chemicals, (ii) engineering; (iii) fertilizers; (iv) pharmaceuticals, (v) power, (vi) food processing; (vii) paper; and (viii) oil and gas.

The company has one manufacturing plant which is strategically located at Bhuj-Bhachau highway, Dhaneti (Kutch, Gujarat) ("Manufacturing Facility") in close proximity, around 55 kilometres and 75 from the ports of Kandla and Mundra, respectively, which helps us in reducing our logistic costs on procurement of raw materials and imports and export of our Products.