Promoters bought 3,00,000 shares of this multibagger pipes and tubes company via preferential issue; Announces capex worth Rs 175 crore for next phase of growth!

The stock gave multibagger returns of 161 per cent in just 1 year whereas BSE Small-Cap Index is up by 64 per cent.

On Thursday, one of the Top Gainers on BSE, shares of Venus Pipes & Tubes Ltd surged 8.62 per cent to an intraday high & fresh 52-week high of Rs 1,889 per share from its previous closing of Rs 1,739.15. At the closing bell, shares of the company were trading at Rs 1,825.75 per share, up 4.98 per cent with a spurt in volume by more than 3.11 times on BSE.

The Board of Directors of the company have allocated a total of 4,20,000 shares via preferential issue to the promoters and non-promoters of the company at Rs 1,700 per share (including a premium of Rs 1,690) for each warrant. The Promoters of the company (Megharam S Choudhary - 80,000 shares; Arun Axaykumar Kothari – 1,34,000 shares; Jayantiram Motiram Choudhary - 27,000 shares and Dhruv Mahendrakumar Patel - 59,000 shares) were allocated a total of 3,00,000 shares and Princely Multitrading LLP (non-promoter) was allocated 1,20,000 shares.

Venus Pipes & Tubes Ltd, one of the leading stainless steel pipes and tube manufacturers and exporters in India announced its foray into the fittings business and announced a capacity expansion for seamless & welded pipes & tubes worth Rs 175 crore for the next phase of growth.

Fittings Business: With nearly a decade of experience providing exceptional piping solutions across various industries, the company is expanding its portfolio to include a comprehensive range of fittings (elbows, tees, reducers, joints, flanges, etc.). This allows us to offer complete PFF (Piping, Fittings, & Flanges) solutions tailored to diverse industry needs. The company’s fittings expertise ensures reliability, durability, and performance. The company customize fittings based on size, shape, and material, adhering to strict quality control for safety and compliance. This expansion reinforces our commitment to innovation and customer satisfaction.

Key Expansion Highlights: The company is introducing value-added stainless and titanium welded tubes for enhanced strength, precision, and corrosion resistance, meeting critical needs in food processing, pharma, nuclear, and power sectors. This niche expertise is set apart. This phase of expansion (Phase 1 by March 2025, Phase 2 by December 2025) involves a Rs 175 crore investment. These projects offer high-teen margins, asset turns similar to our current operations, and non-dilutive return ratios – all bolstering our position as a trusted industrial partner.

The company has a market cap of over Rs 3,700 crore and reported positive numbers in its Quarterly Results (Q3FY24), nine-month results (9MFY24) and annual results (FY23). The stock gave multibagger returns of 161 per cent in just 1 year whereas BSE Small-Cap Index is up by 64 per cent. Investors should keep an eye on this stock.  

Disclaimer: The article is for informational purposes only and not investment advice.