Venus Pipes & Tubes Limited has come up with an initial public offer (IPO). It will open on May 11-13, 2022 at Rs.310-326 a share. The IPO issue size is around Rs.165.42 crore. The minimum bid will be for 46 shares and in its multiples thereafter.
Venus Pipes & Tubes Limited was incorporated in 2015 at Gujrat. It is one of the growing stainless steel pipes and tubes manufacturers and exporters in India having over six years of experience in manufacturing stainless steel tubular products in two broad categories: (A) seamless tubes/pipes; and (B) welded tubes/pipes. The company is currently manufacturing five product lines, namely, (1) stainless steel high precision & heat exchanger tubes; (2) stainless steel hydraulic & instrumentation tubes; (3) stainless steel seamless pipes; (4) stainless steel welded pipes; and (5) stainless steel box pipes. The company has the brand name “Venus”, which supplies its products for applications in diverse sectors including (a) chemicals, (b) engineering, (c) fertilizers, (d) pharmaceuticals, (e) power, (f) food processing; (g) paper, and (h) oil and gas.
Venus Pipes Ltd has one manufacturing plant which is strategically located at Dhaneti (Gujarat). Its manufacturing facility has a total installed capacity of 10,800 MT per annum. The company sells its products both in the domestic as well as the international markets such as Brazil, UK, Israel, Italy, Kuwait, and countries in the European Union.
Megharam Sagramji Choudhary – 22.98%
Jayantiram Motiram Choudhary – 7.75%
Dhruv Mahendrakumar Patel – 16.95%
Arun Axaykumar Kothari – 7.96%
Pre-Issue Shareholding – 64.27%
Post-Issue Shareholding – 48.20%
Strength & Weakness
Experienced & Qualified Team
Large and established competitors
No long-term agreement with customers
Multi-fold demand for Products
Only 1 manufacturing facility
International Accreditations and product approvals
Pricing depends on market demand & economic conditions
Specialized production of Steel Pipes & Tubes
3rd party work agreement for manufacturing
APL Apollo Tubes Ltd
Kalyani Steels Ltd.
Usha Martin Ltd
MSP Steel & Power
Revenue (in Crore)
Profit (in Crore)
Object of Issue
1) Financing the project cost towards capacity expansion, technological upgradation, cost optimization of operations and support to the manufacturing facility, and backward integration for manufacturing of hollow pipes.
2) To meet long-term working capital requirements.
3) General corporate purposes, subject to the applicable laws.