The initial public offering of Venus Pipes and Tubes has subscribed 4.42 times on May 12, Day 2 of the bidding, with investors sending in bids for 1.57 crore shares against an IPO size of 35.51 lakh shares.
The stainless steel pipes and tubes maker raised Rs 49.62 crore from three anchor investors a day ahead of the opening of the issue, reducing the offer size from 50.74 to 35.51 lakh shares.
Anchor investors bid at the higher end of the IPO price band of Rs 310-326 a share.
Retail investors have bid 7.52 times of the shares set aside for them, while non-institutional investors’ portion has been subscribed 2.59 times. Qualified institutional buyers have subscribed 36 percent of their quota of 10.14 lakh shares.
Venus Pipes has reserved half of the total offer for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 35 percent for retail investors.
The company intends to mop up Rs 165.41 crore through the IPO, which is a fresh issue of shares. It will finance its project cost of hollow pipes and meet working capital requirements through the proceeds.
Venus Pipes has over six years of experience in manufacturing stainless steel tubular products in two broad categories—seamless tubes/pipes and welded tubes/pipes. It has a plant in Dhaneti in Gujarat’s Kutch.
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Venus Pipes recorded a profit of Rs 23.63 crore on revenue of Rs 309.33 crore for the financial year 2020-21, against a profit of Rs 4.13 crore on revenue of Rs 177.81 crore in the previous year. For the nine months ended December 2021, profit stood at Rs 23.6 crore on revenue of Rs 276.77 crore.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.