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All that you should know about the Company before applying for the IPO.

May 10, 2022     

The public issue of equity shares of Venus Pipes & Tubes Limited will open for subscription on May 11, 2022 and closes on May 13, 2022. It is expected to list on the stock exchanges on May 24, 2022. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

Established in 2015, the Company is one of the growing stainless steel pipes and tubes manufacturer and exporter based out of Gujarat. The Company classifies its products in two broad categories: (i) seamless tubes/pipes; and (ii) welded tubes/pipes. The Company markets its products under its brand name “Venus”. The Company supplies its Products for applications in diverse sectors including (i) chemicals, (ii) engineering; (iii) fertilizers; (iv) pharmaceuticals, (v) power, (vi) food processing; (vii) paper; and (viii) oil and gas.

The Company sells its products both in the domestic as well as the international markets. It has exported to 20 countries including Brazil, UK, Israel and countries in the European Union, etc (as of 28-FEB-2022). The Company procures raw materials (SS coils and hollow pipes) through 3 main channels: (i) domestic suppliers such as steel manufacturers, stockists and traders; (ii) international suppliers from China, Indonesia, Malaysia and Singapore; and (iii) high sea purchases.

Its manufacturing plant is strategically located at Bhuj-Bhachau highway, Dhaneti (Kutch, Gujarat) in close proximity, around 55 kilometers and 75 from the ports of Kandla and Mundra, respectively. Its manufacturing facility has a total installed capacity of 10,800 MT per annum (as of 28-FEB-2022).

Who are the Promoters of the Company?

Megharam Sagramji Choudhary, Jayantiram Motiram Choudhary, Dhruv Mahendrakumar Patel, and Arun Axaykumar Kothari

Positives about the Company

  • International accreditations and product approvals
  • Specialized production of Stainless-Steel Pipes and Tubes
  • Multi-fold demand of their Products
  • Customer diversification
  • Experienced & qualified team

Who are its key competitors?

  • Jindal Saw Limited
  • Ratnamani Metal & Tubes Limited

Why is the Company going public?

Given below are the objectives of the Company –

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • Financing the project cost towards capacity expansion, technological upgradation, cost optimization of operations and support to the manufacturing facility and backward integration for manufacturing of hollow pipes
  • To meet long-term working capital requirements
  • General corporate purposes

IPO Details

IPO Size ₹ 165.42 Crore *
Offer Mix 100% Fresh Issue
Price Band ₹ 310 - ₹ 326
Lot Size 46 Shares (& in multiples thereof)
Face Value ₹ 10
Application Amount Min. ₹ 14,996 (1 lot) | Max. ₹ 1,94,948 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar Kfin Technologies Limited
Cut-off time for UPI Mandate Confirmation 17-May-2022 (up to 12:00 PM)
* at upper price band

Category Wise Availability *

QIB ₹ 82.71 Crore
(50% of Issue Size)
NIB ₹ 24.81 Crore
(15% of Issue Size)
Retail ₹ 57.90 Crore
(35% of Issue Size)
* at upper price band

Indicative Issue Timeline

Activity Date
IPO Opens May 11, 2022
IPO Closes May 13, 2022
Finalization of the basis of allotment May 19, 2022
Unblocking of funds / Initiation of refunds May 20, 2022
Credit of equity shares to Demat accounts May 23, 2022
Listing of equity shares May 24, 2022
Source: Company RHP
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