New IPO Today: Even though the stock market is volatile nowadays, IPOs continue to come. Recently the IPO of LIC has closed and today the IPO of Venus Pipes is about to come. Venus Pipes & Tubes has come up with an IPO of Rs 165 crore. Its public subscription will start from today and it will end on Friday, May 13.
However, the bidding for anchor investors was opened only yesterday. The company has fixed a price band of ₹ 310-326 per share for its three-day issue. The company will sell 50.74 lakh fresh equity shares through a publish issue. If we look at the upper figure of the price band, then the company is going to raise about Rs 165 crore through IPO from the market.
gray market premium
Unlisted market watchers say Venus Pipes shares were trading at around Rs 360 in the gray market, which is Rs 34 or about 5 per cent more than its upper price band. The allotment of shares of Venus Pipes can be decided on May 19 and its listing is possible on May 24.
In the opinion of experts, Venus increased its capacity during the financial year 2019-21. Its revenue has grown at the rate of 60 percent CAGR during this period. There has also been a significant improvement in the return ratio with strong asset utilization and better returns.
The company is looking to double its capacity to meet the growing demand, increase product portfolio and increase operational efficiency through backward integration. This is the reason why the company has come in the market to raise money through IPO.
Venus Pipes & Tubes is headquartered in Gujarat and manufactures stainless steel pipes and tubes. The company also exports its products. The company also supplies its products under the Venus brand name to Chemical, Engineering, Fertilizer, Pharma, Power, Food Processing, Paper and Oil & Gas Sectors. The products are exported to 18 countries including Brazil, UK and Israel.
According to the information, the company’s profits are continuously increasing. The company’s income has been Rs 276 crore and profit is Rs 23 crore between the first 9 months of FY 2022 i.e. April to December 2021. At the same time, in the financial year 2021, the company’s income was Rs 309 crore, due to which it made a profit of 23.6 crores.
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