Venus Pipes IPO Opens For Subscription

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Venus Pipes & Tubes IPO sails through within 90 mins; retail portion booked 2x

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About Venus Pipes and Tubes IPO

Post-pandemic, the economic activity is picking pace in India as well as globally. The new orders and production are accelerating as the demand surges. Against this backdrop, Venus Pipes & Tubes, which is a manufacturer and exporter of stainless steel pipes and tubes, is launching its public issue.

The proceeds of the Venus Pipes & Tubes IPO will be used by the company to fund capacity expansion and support manufacturing activity. The company’s products are sold under the brand name “Venus” and are divided into two categories – seamless and welded. These products are sold to a diverse range of sectors, including chemicals, engineering, fertilisers, pharmaceuticals, power, food processing, paper and oil & gas.

Venus Pipe & Tubes started exporting its products in 2017. Currently, the company exports to 20 countries including Brazil, UK and Israel. Also, in a bid to increase its presence globally, it has appointed distributors in the overseas market.

Now, this stainless steel pipes and tubes maker is all set to hit the stock markets.

The Venus Pipes & Tubes IPO will be open for subscription between 11 May 2022 and 13 May 2022.

Here are some key details about the Venus Pipes & Tubes IPO.

Company Name Venus Pipes and Tubes Limited Company Type Private
Venus Pipes and Tubes IPO Opening Date 11 May 2022 Company Established On February 2015
Venus Pipes and Tubes IPO Closing Date 13 May 2022 Venus Pipes and Tubes IPO Allotment Status 19 May 2022
Credit of Shares to the Demat Account 23 May 2022 Venus Pipes and Tubes IPO Listing Date 24 May 2022
Venus Pipes and Tubes IPO Face Value Rs. 10 per share Venus Pipes and Tubes IPO Lot Size 46 Shares
Venus Pipes and Tubes IPO Issue Size Rs 165 crore Venus Pipes and Tubes IPO Listed BSE, NSE
Venus Pipes and Tubes IPO Price band Rs 310- Rs 326 per share
Financial snapshot

Here’s a table highlighting the company’s key financial metrics

Particulars FY19 FY20

FY21

9MFY22

Revenue

118.7 crore

177.8 crore 309.3 crore 276.7 crore
Net Profit 3.7 crore 4.1 crore 23.6 crore 23.6 crore


Here’s a quick look at Venus Pipes and Tubes IPO’s strengths, risks and threats
Strengths
  1. Focus on one metal (stainless steel) segment since inception has helped it build expertise
  2. The demand for products comes from three categories – new projects, repair and maintenance and replacement. This has helped in building a robust order book
  3. A diversified customer base. Around 10% of the revenue came from exports in first nine months of FY22
  4. Experienced and qualified promoter and senior management team
  5. Its manufacturing facility has a total installed capacity of 10,800 MTPA
  6. With the global economy recovering, demand for oil & gas is expected to rise further. This is good for the company as the oil & gas industry is a major consumer of steel, and pipes and tubes
Risks and threats
  1. Around 32% of the revenue came from its top 10 customers in 9MFY22
  2. Faces increasing competition from large and established competitors
  3. Hasn’t entered into long term agreements for supplying products and procuring raw materials
  4. Downturns in economies or sectors may lead to a decrease in steel and steel product prices
  5. Dependence on customers from Gujarat, Maharashtra and Telangana for significant portion (90% in FY21) of the domestic revenue

Venus Pipes and Tubes IPO details
| Venus Pipes and Tubes IPO date

The offer document filed by the company with the SEBI mentions that the Venus Pipes & Tubes IPO’s opening date – in other words, the Venus Pipes & Tubes IPO launch date – will be on 11 May 2022. The Venus Pipes & Tubes IPO closing date is 13 May 2022. After this, investors will be updated about the allotment status on 19 May 2022.


Investors, who have been allotted shares, can expect them to be credited in their demat account on 23 May 2022. The Venus Pipes & Tubes IPO listing date is 24 May 2022. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.

| Venus Pipes and Tubes IPO price band

The entire IPO is a book-built issue. The Venus Pipes & Tubes IPO price band has been set between ₹310 and ₹326 per share. Interested investors can choose a price within this band to apply for the IPO.


The Venus Pipes & Tubes IPO listing price will be determined on 24 May 2022. The listing price is the price at which the shares of a company make their debut on the stock exchanges.

| Venus Pipes and Tubes IPO lot size

The Venus Pipes & Tubes IPO details have been declared. The Venus Pipes & Tubes IPO lot size is set at 30 shares, and an investor can apply for a minimum of 1 lot. Individual investors applying under the retail category can only apply for up to 13 lots (598 shares). Meanwhile, the Venus Pipes & Tubes IPO issue size is ₹165 crore.





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