How much registration earnings to expect? Know the details
Venus Pipes and Tubes, whose initial public offering (IPO) opened for public subscription between May 11 and May 13, is scheduled to go public on Tuesday May 24. The IPO was oversubscribed 16.31 times on the last day of the auction, receiving bids for 5,79,48,730 shares against 35,51,914 shares on offer. The company’s unlisted shares were trading at a premium of Rs 25 on the gray market on Sunday.
Venus Pipes & Tubes IPO GMP
According to chanakyanipothi.com, shares of Venus Pipes & Tubes are currently trading at a premium of Rs 25 in the gray market, above the upper band of Rs 326. This translates into a trading gain of 5%. This means that gray market shares are trading at Rs 351 each. It also shows the expected listing price of the company’s shares, going forward. The premium fluctuates based on sentiment in the markets.
IPO of Venus Pipes & Tubes: expert opinion
Manoj Dalmia, Founder and Director of Proficient Equities, said: “Rising trends in the commodity markets have helped this company post a super performance and given the promising outlook, it is expanding. The number has been subscribed 16 times. Investors can keep this with a medium to long term outlook or pound trading gains.
Venus Pipes & Tubes IPO: Basic Details
Venus Pipes & Tubes Limited is a Gujarat-based manufacturer and exporter of stainless steel pipes and tubes. The company sells products in domestic and international markets and exports to approximately 18 countries.
Present on a single metal segment since its creation, the company has acquired sector expertise. The company supplies its products to a diverse range of industries and demand for its products is also expected to increase with growth in the downstream sector, brokerage Anand Rathi said in its Venus Pipes IPO memo.
The public offering, whose price range was Rs 310-326 per share, included the sale of 50.74 lakh shares of the company. Its total size was Rs 165.35 crore. Its shares are proposed to be listed on both the NSE and the BSE.
The IPO had a 35% reserve for retail investors, while qualified institutional buyers (QIBs) could participate in 50% of the total issue size. Non-institutional investors were able to participate in the remaining 15% of the IPO size.
The company proposes to use proceeds from the public offering to fund the cost of the project toward capacity expansion and upstream integration for hollow pipe manufacturing, to meet working capital requirements and for general business needs.
The company has approximately six years of experience in the manufacture of stainless steel tubular products in two major categories: seamless tubes and pipes; and welded tubes and pipes. Under the “Venus” brand, the company supplies its products for applications in various industries, including chemicals, engineering, fertilizers, pharmaceuticals, energy, food, paper, oil and gas . The company is one of the fastest growing manufacturers and exporters of stainless steel tubes and pipes in India.
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