Venus Pipes & Tubes IPO subscribed 3.25x so far on Day 2

[ad_1]

New Delhi: The Rs 165.42 crore initial public offering (IPO) of Venus Pipes and Tubes attracted a solid response from investors on the second day of bidding. The issue had sailed through within the first 90 minutes on Day 1.

The IPO, which opened for subscription on Wednesday, can be subscribed till Friday, May 13. The company is selling its shares in a lot size of 46 equity shares at a price range of Rs 310-326.

According to data from BSE, investors made bids for 1,15,35,466 equity shares or 3.25 times compared to 35,51,914 equity shares offered for subscription by 12.15 pm on Thursday.

The quote for retail bidders was subscribed 5.63 times, whereas the allocation for qualified institutional buyers was subscribed 1.54 times. Non institutional bidder’s portion was subscribed 36 per cent.

The company has reserved 50 per cent of the net offer for qualified institutional buyers (QIBs), whereas non institutional buyers (NIIs) will get 15 per cent allocation. Remaining 35 per cent shares will be given to retail bidders.

Venus Pipes and Tubes is a manufacturer and exporter of stainless steel pipes and tubes in two broad categories – seamless tubes/pipes and welded tubes/pipes.

Venus Pipes and Tubes has one manufacturing plant which is located at Bhuj-Bhachau highway, Gujarat, with an installed capacity of 10,800 MT per annum.

The company sells products in both domestic and international markets. Venus Pipes & Tubes exports its products to 18 countries including Brazil, the UK, Israel and countries in the European Union.

Majority of the brokerages are positive on the issue and have suggested subscribing to it, tracking its sound financials, growth prospects, healthy margins and expansion plans. However, a few of them are wary over the valuations of the company.

“The company is backed with an increasing commodity prices environment that is likely to reflect in their margins. It is also supported by the growth of the industry that it serves backed with favourable government policies,” said Canara Bank Securities with a ‘subscribe’ rating on the issue.

[ad_2]

Source link

https://businesstantra.in/folder