Venus Pipes GMP, Subscription, Review; Last Chance to Invest Today, Should You Buy?

Venus Pipes IPO: On the final day of bidding, the initial public offering of  Venus Pipes & Tubes Ltd. was subscribed 7.4 times by the afternoon of May 13. 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 Venus Pipes IPO price band of Rs 310-326 a share. The IPO of Venus pipes and tubes company is entirely a fresh issue comprising a sale of 50.74 lakh (50,74,100) equity shares and there is no offer-for-sale (OFS) portion. The entire proceeds from the issue will be used for financing the project cost towards capacity expansion and backward integration for manufacturing of hollow pipes, meet working capital requirements and for general corporate purposes, according to the details given in the red herring prospectus (RHP).

Venus Pipes IPO: Subscription Status

Retail investors have bid 11.85 times the shares set aside for them, while non-institutional investors’ portion has been subscribed 4.84 times on the final day. Qualified institutional buyers subscribed 1.54 times or 15.64 lakh 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.

Venus Pipes IPO: Lot Size

Investors who wish to subscribe to Venus Pipes IPO can bid in a lot of 46 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,996 to get a single lot of Venus Pipes and Tubes. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).

The applicants also must note that the cut-off time for UPI mandate confirmation is Tuesday, May 17, 2022, upto 12:00 pm. If they fail to do so then their application may not be considered.

Venus Pipes IPO: GMP Today

As per market observers, Venus Pipes shares are available at a premium (GMP) of Rs 32 in the grey market today, up from Rs 24 yesterday. The company’s shares are expected to list on stock exchanges BSE and NSE on Tuesday, May 24, 2022.

Venus Pipes IPO: What Analysts Say?

Hem Securities said that “Company is bringing the issue at a price band of Rs 310-326 per share at p/e multiple of 21x on 9Months FY22 eps basis. Company with international Accreditations and product approvals is specialized in the production of Stainless-Steel Pipes and Tubes with multi-fold demand for its Products & Customer Diversification. Hence, we recommend “Subscribe” on the issue.

Anand Rathi Research in its report noted, “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. The Company has delivered good growth in Sales over the past few years along with an 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.”

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