Venus Pipes and Tubes share price rises as stock makes positive debut
Premium- The IPO of Venus Pipes was subscribed over 16 times and the retail segment saw good demand
Shares of Venus Pipes and Tubes made a positive debut on BSE today with the stock rising to ₹351 as compared to issue price of ₹326. The IPO or initial public offer of Venus Pipes and Tubes was subscribed 16.31 times. The retail portion saw good demand and was subscribed 19.04 times. The portion for non-institutional investors received 15.69 times subscription and Qualified Institutional Buyers (QIBs) 12.02 times.
Prior to the IPO, Venus Pipes and Tubes had collected over ₹49 crore from anchor investors. The IPO of 50,74,100 equity shares had a price range of ₹310-326 per share.
“Decent listing gain seems to be justified with increasing demand for its products and company aiming to doubling its capacity to cater the demand. On valuation per se the issue is fully priced-in. Investors should note that Venus Pipes falls under or below Rs. 250 cr IPO and initial it will be listing under “T" group, hence Investors should consider this and trade it accordingly with medium to long term perspective," said Prashanth Tapse, Vice President (Research), Mehta Equities Ltd.
Proceeds from the Venus IPO 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 is a Gujarat-based company is a manufacturer and exporter of stainless steel pipes and tubes.
The company, under the brand name Venus, supplies its products for application in diverse sectors, including chemicals, engineering, fertilisers, pharmaceuticals, power, food processing, paper and oil and gas.
Elsewhere, shares of Delhivery Ltd made stock market debut on Tuesday with the stock listing at ₹495 on the NSE, a premium of nearly 2% from its IPO issue price of ₹487 per share. On BSE, Delhivery shares started trading at ₹493 apiece. (With Agency Inputs|)
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