The initial public offering of Venus Pipes and Tubes was subscribed 16.31 times on day 3 or final day - May 13 with investors putting in bids for 5.79 crore units 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 19.04 times the shares set aside for them, while non-institutional investors’ portion has been subscribed 15.66 times on the final day. Qualified institutional buyers subscribed 12.02 times or 1.21 crore shares of their quota of 10.14 lakh shares.
Venus Pipes has reserved half of the 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. The proceeds will finance its hollow pipes project and meet working capital requirements.
Venus Pipes has over six years of experience in manufacturing stainless steel tubular products in two broad categories—seamless tubes and pipes and welded tubes and 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 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.