Shares of Venus Pipes & Tubes Limited will debut on Dalal Street on Tuesday. Venus Pipes & Tubes stock will get listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) at 10 am on May 24. Venus Pipes & Tubes initial public offering (IPO) received decent response from the investors during the subscription period.
Venus Pipes & Tubes IPO opened from subscription from May 11-13. The Gujarat-based manufacturer and exporter aimed to raise Rs 165.42 crore from its public offer. The price band has been set at Rs 310-326 per share. Venus Pipes IPO comprises sale of 50.74 lakh fresh equity shares of the company. There is no offer for sale (OFS) component.
Venus Pipes & Tubes IPO was subscribed 16.31 during the offer period. The quota allocated for the qualified institutional buyers (QIBs) was subscribed 12.02 times. The portion set aside for non-institutional investors (NIIs) was booked 15.66 times. Retail investors booked their portion 19.04 times.
The grey market premium of Venus Pipes & Tubes was Rs 45 on Tuesday ahead of the listing, according to the market observers. The unlisted shares of Venus Pipes was trading at Rs 371 at grey market, 14 per cent up from the upper end of the issue price. The strong premium in the grey market and decent response from investors indicate positive listing for Venus Pipes & Tubes IPO on May 24.
Venus Pipes is a pipes and tubes manufacturer with the sole focus on manufacturing of welded and seamless pipes in a single metal category, i.e., stainless steel. 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, e) Stainless steel box pipes.
On valuation of Venus Pipes IPO, Hem Securities said, “Company is bringing the issue at price band of Rs 310-326 per share at p/e multiple of 21x on 9Months FY22 eps basis.”
Venus Pipes & Tubes IPO Listing Today: Listing Strategy for You
Commenting on the listing gains, Ravi Singh, vice president and head of research at Share India said, “Apart from selling steel tubes and pipes, Venus company is involved in exports also. The company has posted stable growth in past years and it’s margin is also improving year by year. Although, the market sentiments are negative these days, Venus ipo may list at premium of around 4-5 per cent and investors can hold the stock for medium to long term.”
Manoj Dalmia, founder and director at Proficient Equities said, “The company has business in both domestic and global merchandise. It has managed to report sustainable business growth in recent years and its margin pressure is also coming down year after year. So, fundamentals of the company is quite strong and it may have a positive listing irrespective of the secondary market mood.”