Tuesday is likely to see the stock market debut of Venus Pipes & Tubes, whose initial public offering (IPO) was available for public subscription between May 11 and May 13. (May 24). On the last day of bidding, the initial public offering (IPO) was subscribed 16.31 times, with offers for 5,79,48,730 shares received versus 35,51,914 shares offered. On Sunday, the company's unlisted shares were sold in the grey market for a premium of Rs 25.
Venus Pipes & Tubes IPO GMP
The shares of Venus Pipes & Tubes are currently selling in the grey market at a premium of Rs 25 over the upper band of Rs 326, according to chanakyanipothi.com. Five percent is added to the listing gain. It indicates that the price of a share on the black market is Rs 351. Additionally, it now displays the anticipated listing price for the company's shares. According to market mood, the premium fluctuates.
Venus Pipes & Tubes IPO: The Expert Take
"Rising trends in commodity markets helped this company to post excellent performance and considering bright prospects, it is on a growth binge," stated Manoj Dalmia, founder, and director of Proficient Equities. There were 16 subscriptions to the issue. Investors may hold this with a medium- to long-term outlook or for gains from book listings.
Venus Pipes & Tubes IPO: Basis Details
A manufacturer and exporter of stainless steel pipes and tubes with its headquarters in Gujarat called Venus Pipes & Tubes Limited. The business sells its goods both domestically and abroad, shipping to around 18 different nations.
Since its founding, the company has exclusively operated in one metal segment, giving it segment expertise. According to Anand Rathi brokerage house's Venus Pipes IPO note, the company supplies its products to a variety of industries, and demand for them is anticipated to rise along with the growth of the downstream industry.
The sale of 50.74 lakh equity shares of the corporation was the subject of the public offering, which had an equity share price range of Rs 310-326. It cost a total of Rs. 165.35 crores. Its shares are being suggested for both NSE and BSE listings.
Retail investors received a reserve of 35% of the IPO, while qualified institutional buyers (QIBs) were permitted to purchase 50% of the entire issue size. The final 15% of the IPO size was open for participation by non-institutional investors.
The business plans to use the public offering's proceeds to finance the project's costs for backward integration and capacity growth for the production of hollow pipes, to satisfy working capital needs, and for other general corporate objectives.
The company has produced stainless-steel tubular products in two major categories — seamless tubes & pipes, and welded tubes & pipes — for almost six years. The company sells its products under the brand name "Venus" for use in a variety of industries, including oil and gas, engineering, fertilizers, pharmaceuticals, power, food processing, and chemicals. The business is one of India's fastest-growing producers and exporters of stainless steel pipes and tubes.-