Venus Pipes and Tubes makes a strong debut; hits 5 per cent upper circuit upon listing
Shares of Venus Pipes and Tubes are trading at a premium of 7.9 per cent.
Venus Pipes & Tubes has a great start after listing as the scrip hit the upper circuit of 5%. The issue price range of the IPO was Rs 310- 326. Currently, the trading has been halted at Rs 351.75. It has rewarded its shareholders by listing at a premium of 7.9 per cent from the higher end of the issue price range.
The IPO had received a strong response from investors as the issue was subscribed 12.02 times by qualified institutional buyers (QIB), 16 times by non-institutional investors and 19 times by retail investors.
Venus Pipes & Tubes Limited (Venus) is a Gujarat-based manufacturer and exporter of stainless steel pipes and tubes, primarily catering to industry-grade requirements with end uses spanning across chemicals, pharmaceuticals, food processing industries and other engineering needs. Out of the net proceeds, Venus intends to use around Rs 108 crore to fund ongoing capacity expansion and Rs 25 crore for working capital requirements and general corporate purposes.
The company is proposing to expand the existing manufacturing capacity for welded pipes/tubes and seamless pipes/tubes for manufacturing higher diameter welded pipes/tubes (up to 1219.2 mm) and seamless pipes/tubes (up to 168.3 mm), to gain a competitive advantage over its competitors. What will drive the additional demand for the product of the company is the recently announced Production Linked Incentives (PLI) Schemes by the Government of India. It is expected to boost domestic production in the pharmaceuticals, food processing and automobiles sectors translating into a better order book for the company.