Venus Pipes & Tubes is going to launch its initial public offering (IPO) this week on May 11 and will close on May 13. The size of the IPO is about Rs 165 crore and its price band has been fixed at Rs 310-326 per equity share. Its shares in the grey market are currently trading at a premium of Rs 35 apiece. Here’re important facts about the company and its IPO that investors need to know before applying for the offer.
Venus Pipes & Tubes IPO: Date and Size
The IPO of Venus Pipes & Tubes will be open for public subscription between May 11 and May 13. The bidding for anchor investors will open on May 10. The public issue comprises the sale of 50.74 lakh equity shares of the company. Its total size will be Rs 165.35 crore. The tentative date for the announcement of share allocation is May 19. The likely date for share listing is May 24. Its shares are proposed to be listed on both NSE and BSE.
Venus Pipes & Tubes IPO: Lot Size
An investor can bid for a minimum of one lot and a maximum of 13 lots. A lot will comprise 46 shares of Venus Pipes & Tubes. 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.
Venus Pipes & Tubes IPO: Quotas
The initial public offering will have a reservation of 35 per cent for retail investors, while qualified institutional buyers (QIBs) will be able to participate in 50 per cent of the total issue size. Non-institutional investors will be able to participate in the remaining 15 per cent of the IPO size.
Venus Pipes & Tubes IPO GMP
According to the IPO Watch, the shares of Venus Pipes & Tubes are currently trading at a premium of Rs 35 in the grey market, over the upper band of Rs 326. It translates into a listing gain of 10 per cent. It means the shares in the grey market are trading at Rs 361 apiece. The premium gets fluctuated based on the sentiments in the markets.
Venus Pipes & Tubes IPO: Objective
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.
About Venus Pipes & Tubes IPO
The company has about six years of experience in manufacturing of stainless-steel tubular products in two broad categories — seamless tubes & pipes; and welded tubes & pipes. Under the brand name ‘Venus’, the company supplies its products for applications in diverse sectors including chemicals, engineering, fertilisers, pharmaceuticals, power, food processing, paper and oil and gas. The company is one of the growing stainless-steel pipes and tubes manufacturers and exporters in India.