Capital Market Last Updated at May 16, 2022 10:04 IST
The offer received bids for 5.79 crore shares as against 35.51 lakh shares on offer.
The initial public offer (IPO) of Venus Pipes and Tubes received bids for 5,79,48,730 shares as against 35,51,914 shares on offer. The issue was subscribed 16.31 times.
The retail investors category was subscribed 19.04 times. The non institutional investors category was subscribed 15.69 times. The qualified institutional buyers (QIBs) category was subscribed 12.02 times.
The issue opened for bidding on Wednesday (11 May 2022) and it closed on Friday (13 May 2022). The price band of the IPO was fixed at Rs 310 - 326 per share.
The offer comprised of fresh issue of 50,74,100 equity shares aggregating up to Rs 165.4 crore. The company proposes to utilize the net proceeds from the issue towards financing the project cost towards capacity expansion, technological upgradation, cost optimization of operations and backward integration for manufacturing of hollow pipes amounting Rs 107.945 crore. The company also aims to meet long-term working capital requirements amounting Rs 25 crore and balance towards general corporate purposes.
Ahead of the IPO, Venus Pipes and Tubes on Tuesday, 10 May 2022, finalized allocation of 15,22,186 equity shares to anchor investors at an allocation price of Rs 326 per share, aggregating to Rs 49,62,32,636.
Venus Pipes & Tubes is a pipes and tubes manufacturer with the sole focus on manufacturing of welded and seamless pipes in a single metal category, i.e., stainless steel (SS).
The company manufactures stainless steel tubular products in two broad categories - seamless tubes/pipes and welded tubes/pipes. The company is currently manufacturing 5 product lines, namely - stainless steel high precision & heat exchanger tubes, stainless steel hydraulic & instrumentation tubes, stainless steel seamless pipes, stainless steel welded pipes and stainless-steel box pipes.
Venus Pipes and Tubes reported a net profit of Rs 23.60 crore on a total income of Rs 276.77 crore in the nine months ended on December 2021.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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