Venus Pipes IPO: GMP, subscription status on day 2 of the bidding
As of 12:10 pm on day 1, Venus Pipes IPO has been subscribed 3.24x with retail segment overbooked 5.62 times, NIIs 1.54x and QIBs 0.36x, BSE data showed.
The public issue comprises sale of 50.74 lakh fresh equity shares of the company and there is no offer for sale (OFS) component. At the upper end of the price band, the company is expected to mop up ₹165.41 crore via IPO. Venus Pipes and Tubes has collected over ₹49 crore from anchor investors.
As per market observers, Venus Pipes shares are available at a premium (GMP) of ₹24 in the grey market today. The company's shares are expected to list on stock exchanges BSE and NSE on Tuesday, May 24, 2022.
Proceeds from the issue will be used for financing the project cost towards capacity expansion and backward integration for manufacturing of hollow pipes, to meet working capital requirements and for general corporate purposes.
"Venus Pipes and Tubes Ltd is backed with increasing commodity prices environment that is likely to reflect in their margins. It is also supported by the growth of the industry that it serves backed with favourable government policies. We recommend a subscribe for long term for the company," Bonanza Portfolio said in a note.
The Gujarat-based company is a growing stainless-steel pipes and tubes manufacturer and exporter in India. The company, under the brand name Venus, supplies its products for applications in diverse sectors, including chemicals, engineering, fertilizers, pharmaceuticals, power, food processing, paper and oil and gas.
"The Company has delivered good growth in Sales over past few years along with increasing margin profile. However, Venus faces competition from its peers who hold substantial market share in the SS pipes and tubes market. When compared to its listed peers, Venus seems to be richly priced. We recommend an "Avoid" rating to this IPO," said brokerage Anand Rathi in a note.