Last chance to invest today; Venus Pipes GMP, Subscription, Review; Should You Buy?


Venus Pipes IPO: By the afternoon of May 13, the initial public offering of Venus Pipes & Tubes Ltd. had received 7.4 times its subscription on the last day of bidding. A day before the deal opened, the manufacturer of stainless steel pipes and tubes received Rs 49.62 crore from three anchor investors, lowering the offered size from 50.74 to 35.51 lakh shares. At the top end of the Venus Pipes IPO price range of Rs 310-326 per share, anchor investors made their bid. There is no offer-for-sale (OFS) component in the IPO of Venus Pipes and Tubes Company, which sells 50.74 lakh (50,74,100) equity shares. According to the information provided in the red herring prospectus, the entire amount of the proceeds from the offering will be used to meet working capital requirements, finance the project cost for capacity expansion and backward integration for manufacturing hollow pipes, and for general corporate purposes (RHP).


Venus Pipes IPO: Subscription Status

On the last day, non-institutional investors' shares have been subscribed 4.84 times, while retail investors bid 11.85 times the shares reserved for them. Of their allotment of 10.14 lakh shares, qualified institutional purchasers subscribed 1.54 times or 15.64 lakh shares.


Half of the offer has been set aside by Venus Pipes for eligible institutional buyers, 15% has been set out for non-institutional investors, and the remaining 35% has been set aside for retail investors.

IPO

Investors can place a bid in a lot of 46 equity shares and subsequent multiples if they want to subscribe to Venus Pipes IPO. A single quantity of Venus Pipes and Tubes will cost them Rs 14,996 at the higher price range. Both the BSE and the National Stock Exchange will list the shares (NSE).


The deadline for UPI mandate confirmation is Tuesday, May 17, 2022, up until noon, which the applicants should also be aware of. Their application might not be taken into consideration if they don't.


Venus Pipes IPO: GMP Today

According to market watchers, Venus Pipes shares are now trading in the grey market for a premium (GMP) of Rs 32, up from Rs 24 yesterday. On Tuesday, May 24, 2022, the company's shares are anticipated to list on the BSE and NSE stock markets.

Venus Pipes IPO: What Analysts Say?


"The company is accessible at the upper end of the IPO price band at 21x its FY22 annualized earnings attributable to post issue stock demanding a market valuation of Rs 6,617 million," Anand Rathi Research stated in its report. The issue is priced at a P/BV of 10.7x based on its NAV of Rs 30.5 as of March 31, 2021, which is at the upper end of the IPO pricing band. Over the past three years, the company has generated solid sales growth together with an improving margin profile. Venus is opposed by its competitors, who are market leaders in the SS pipes and tubes industry. Venus appears to be expensive when compared to its listed competitors. For this IPO, we advise "Avoid."

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