Venus Pipes & Tubes Limited IPO | Review

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.

Overview

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.

Promoters

Megharam Sagramji Choudhary – 22.98%	Jayantiram Motiram Choudhary – 7.75%
Dhruv Mahendrakumar Patel – 16.95%	Arun Axaykumar Kothari –  7.96%

Promoter Holding

Pre-Issue Shareholding – 64.27%

Post-Issue Shareholding – 48.20%

Strength & Weakness

Strengths	Weaknesses
Experienced & Qualified Team	Large and established competitors
Customer Diversification	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

Competitors

APL Apollo Tubes Ltd	Maharashtra Seamless	Kalyani Steels Ltd.
Mukand Ltd	Usha Martin Ltd	MSP Steel & Power

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2019	118.75	3.75
31-Mar-2020	177.80	4.12
31-Mar-2021	309.33	23.63
31-Dec-2021	276.76	23.60

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.

Venus Pipes & Tubes IPO Lot Size

Application	Lot	Shares	Amount
Minimum	1	46	Rs.14,996
Maximum	13	598	Rs.1,94,948

Venus Pipes & Tubes IPO details

IPO Opening Date	May 11, 2022
IPO Closing Date	May 13, 2022
Face Value	Rs.10 per Equity Share
IPO Price	Rs.310-326 per share
Market Lot	46 shares
Minimum Order Quantity	46 shares
Listing At	NSE, BSE
No. of shares offered	50,74,100 shares
Issue Size	Up to Rs.165.42 Crore
QIB Shares Offered	50% of the offer
Retail Shares Offered	35% of the offer
NII/HNI Shares Offered	15% of the offer

Venus Pipes & Tubes IPO Timetable

IPO Date	May 11-13, 2022
Allotment Date	May 19, 2022
Initiation of Refunds	May 20, 2022
Credit of share to Demat a/c	May 23, 2022
IPO Listing Date	May 24, 2022

Allotment Status

KFinech – https://kosmic.kfintech.com/ipostatus/

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