Venus Pipes & Tubes IPO: Stainless steel pipes and tubes manufacturer and exporter Venus Pipes & Tubes Limited, based in Gujarat, is opening its initial public offering on May 11, Wednesday. The Venus Pipes IPO is open today, and the shares will be up for bidding till May 13, Friday, in a three-day initial stake sale by the company. As per Red herring Prospectus of Venus Pipes & Tubes IPO, bidding for anchor investors had begun a day back on May 10, Tuesday.
Venus Pipes & Tubes IPO: Price Band and Size
The price band of the Venus Pipes IPO has been fixed at Rs 310-326 per equity share. The public issue comprises the sale of 50.74 lakh equity shares of the company. Its total size will be Rs 165.35 crore. Its shares are proposed to be listed on both NSE and BSE.
Venus Pipes & Tubes IPO GMP Today
According to the IPO Watch, the shares of Venus Pipes & Tubes are currently trading at a premium of Rs 25 in the grey market, over the upper band of Rs 326. This means that Venus Pipes & Tubes IPO GMP today is down by Rs 10 than yesterday, which translates into a listing gain of 7.6 per cent. It means the shares in the grey market are trading at Rs 351 apiece.
Venus Pipes IPO: Company Details and Valuation
Anand Rathi: Venus Pipes and Tubes Ltd is a manufacturer of pipes and tubes with the sole focus on manufacturing of welded and seamless pipes in a single metal category i.e. stainless steel. Being present in only one metal segment since inception, the company has gained segment expertise. The Company supplies their Products across a diversified range of sectors and the demand for their product is also expected to increase with growth in downstream sector. The company is planning to double its capacity and backward integrate with the help of IPO proceeds which will help it to increase its revenue and margins.
The company is available at the upper end of the IPO price band at 21x its FY22 annualized earnings attributable to post issue equity demanding a market cap of Rs. 6,617 million. At the upper end of the IPO price band, the issue is priced at a P/BV of 10.7x based on its NAV of Rs. 30.5 as of March 31, 2021.
Venus Pipes and Tubes IPO: Should You Subscribe?
“Venus Pipes and Tubes have had a robust growth in their topline and profitability margins over the last three fiscals. The issuer plans to grow through capacity expansion and backward integration to become self- reliant in raw material. Valuations also appear attractive when compared to peers. Hence, one might apply for the Issue,” said TopShareBrokers in its review.
“The Company has delivered good growth in Sales over past few years along with increasing margin profile. However, Venus faces competition from its peers who hold substantial market share in the SS pipes and tubes market. When compared to its listed peers, Venus seems to be richly priced. We recommend an “Avoid” rating to this IPO,” said brokerage house Anand Rathi Communications in a note on the Venus Pipes & Tubes IPO.
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