Venus Pipes and Tubes IPO: The Initial Public Offering (IPO) of Gujarat-based stainless-steel pipes and tubes manufacturer and exporter company Venus Pipes and Tubes Limited was subscribed 16.31 times as of its final day of bidding. The share allotment process has already been done, and winning bidders are likely to receive credit to their demat accounts by today, that is Monday, May 23. The issue will list on Tuesday, May 24 and investors would be keen to see how the Venus Pipes and Tubes IPO performs at the bourses. The Venus Pipes IPO was a fresh issue of Rs 165 crore, with a price band of Rs 310 to Rs 326 per share.
Venus Pipes and Tubes IPO GMP Today
According to IPO Watch Venus Pipes IPO gray market premium (GMP) today is Rs 30, which is Rs 5 lower than its Sunday GMP of Rs 5. They said that Venus Pipes IPO GMP has been doing rounds in between Rs 40 to Rs 20 range for last one week in gray market. Market observers went on to add that lowering of Venus Pipes IPO in gray market premium can be attributed to the negative stock market sentiments, which is still persisting due to a number of reasons.
Market observers said that Venus Pipes IPO GMP today is Rs 30, which means gray market is expecting that Venus Pipes IPO listing would happen at around Rs 356 ( Rs 326 + Rs 30), which is around 7 per cent higher from its price band of Rs 310 to Rs 326 per equity share. So, Venus Pipes IPO GMP today indicates that the public issue will have a ‘moderate listing.’
What Experts Say on Listing Gains
“Apart from selling steel tubes and pipes, Venus Pipes & Tubes IPO is involved in exports also. The company has posted stable growth in past years and it’s margin is also improving year by year. Although, the market sentiments are negative these days, Venus Pipes and Tubes IPO may list at premium of around 4-5 per cent and investors can hold the stock for medium to long term,” said Ravi Singh, vice president and head of research at Share India.
Venus Pipes and Tubes IPO: Objectives
Venus Pipes IPO has several objectives including 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. The Venus IPO objective is also to meet long-term working capital requirements; The proceeds from the Venus Pipes IPO will also be used for general corporate purposes, subject to the applicable laws
Venus Pipes and Tubes IPO: Valuation
As per Hem Securities, Venus Pipes and Tubes is bringing the issue at price band of Rs 310-326 per share at p/e multiple of 21x on 9Months FY22 eps basis. The company with international Accreditations and product approvals is specialized in production of Stainless-Steel Pipes and Tubes with multi-fold demand of its Products and Customer Diversification
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