Venus Pipes & Tubes IPO: Venus Pipes & Tubes Limited, a Gujarat-based stainless steel pipe and tube manufacturer and exporter, is making its initial public offering on Wednesday, May 11. Venus Pipes IPO Open today, and bidding for shares in a three-day initial stake sale by the company will take place through Friday, May 13. According to the red herring prospectus of the Venus Pipes & Tubes IPO, bidding for anchor investors began a day earlier on Tuesday, May 10.
Venus Pipes & Tubes IPO: Price Band and Size
price band of Venus Pipes IPO 310-326 per equity share has been fixed. The public issue involves 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
As per IPO Watch, the shares of Venus Pipes & Tubes are currently trading at a premium of Rs 25 from the upper band of Rs 326 in the gray market. This means Venus Pipes & Tubes IPO GMP is down by Rs 10 today. Compared to yesterday, that translates into a listing profit of 7.6 percent. This means that the gray market shares are trading at Rs 351.
Venus Pipes IPO: Company Description and Valuation
Anand Rathi: Venus Pipes & Tubes Limited is a manufacturer of Pipes & Tubes with sole focus on manufacturing of Welded & Seamless Pipes in 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 its products to a diverse range of sectors and with the growth in the downstream sector, the demand for their product is expected to increase as well. The company is planning to double its capacity and plan backward consolidation with the help of IPO proceeds which will help it increase its revenue and margins.
The company is available at the upper end of the IPO price band at 21x its FY22 annual earnings, which is due to post equity seeking 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 by March 31, 2021.
Venus Pipes & Tubes IPO: Should You Subscribe?
The company has registered decent growth in sales over the years with increase in margin profile. However, Venus faces competition from its peers, who hold a substantial market share in the SS pipe and tube market. Compared to its listed peers, Venus has a fairly high price tag. We recommend this IPO with an “Avoid” rating, brokerage house Anand Rathi Communications said in a note on Venus Pipes & Tubes IPO.
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