Chennai, May 06, 2022: Gujarat-based Venus Pipes & Tubes Limited (“The Company”) has fixed the price band at ₹ 310 to ₹ 326 per Equity Share for its maiden public offer. The initial public offering (“IPO”) of the Company will open on Wednesday, 11 May, 2022 for subscription and close on Friday, 13 May, 2022. Investors can bid for a minimum of 46 Equity Shares and in multiples of 46 Equity Shares thereafter.
The IPO is through a fresh issue of equity shares of up to 5,074,100 Equity Shares.
Venus Pipes and Tubes Limited is one of the growing stainless-steel pipes and tubes manufacturer and exporter in the country having over six years of experience in manufacturing of stainless steel tubular products in two broad categories namely seamless tubes/pipes; and welded tubes/pipes. The company holds pride in supplying its wide product range to more than 20 countries internationally.
The company supplies products for applications in diverse sectors including chemicals, engineering, fertilizers, pharmaceuticals, power, food processing, paper, and oil and gas.
The Company has one manufacturing plant which is strategically located at Bhuj-Bhachau highway, Dhaneti (Kutch,Gujarat) in close proximity, around 55 kilometers and 75 kilometers from the ports of Kandla and Mundra, respectively, that helps us in reducing the logistic costs on procurement of raw materials and imports and export of the Products. The manufacturing plant has separate seamless and welded divisionswith latest product-specific equipment and machineries including tube mills, pilger mills, draw benches, swaging machines, pipe straightening machines, TIG/MIG welding systems, plasma welding systems, etc.
For the financial year ended on March 31, 2021, the revenue from operations was Rs 3093.31 million with a net profit of Rs 236.32 million. For nine months ended December 31, 2021, the revenue from operations was Rs. 2767.69 million with a net profit of Rs. 235.95 million.
The Company may, in consultation with the book running lead manager to the Issue, consider participation by Anchor Investors in accordance with the SEBI ICDR Regulations, whose participation shall be one Working Day prior to the Bid/Issue Opening Date, i.e., Tuesday, May 10, 2022. The Issue is being made in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, read with Regulation 31 of the SEBI ICDR Regulations. The Issue is being made through the Book Building Process, in terms of Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Issue shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Issue shall be available for allocation to Non-Institutional Bidders out of which a) one third of such portion shall be reserved for applicants with application size of more than Rs. 0.2 million and up to Rs. 1.0 million and (b) two-third of such portion shall be reserved for applicants with application size of more than Rs. 1.0 million, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Bidders and not less than 15% of the Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Issue Price.
All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the red herring prospectus dated May 2, 2022 (“RHP”) filed with SEBI and the stock exchanges.
Disclaimers: VENUS PIPES & TUBES LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public issue of its Equity Shares and has filed the RHP with the RoC and thereafter with SEBI and the Stock Exchanges. The RHP shall be available on the website of the SEBI at www.sebi.gov.in as well as on the website of the BRLM, SMC Capitals Limited at www.smccapitals.com, the website of the National Stock Exchange of India Limited at www.nseindia.com and the website of the BSE Limited at www.bseindia.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risks, see “Risk Factors” on page 23 of the RHP. Potential investors should not rely on the DRHP filed with SEBI for any investment decision.
The Equity Shares have not been and will not be registered under the U. S. Securities Act of 1933 (the “U. S. Securities Act”) or any state securities laws in the United States, and unless so registered, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U. S.
Securities Act and applicable U. S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in offshore transactions in reliance on Regulation S and the applicable laws of each jurisdictions where such offers and sales are made. There will be no public offering of the Equity Shares in the United States.
This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration under the U. S. Securities Act or an exemption from such registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Corporation or the Selling Shareholder and that will contain detailed information about the Corporation and management, as well as financial statements. However, no public offering of securities in the United States is contemplated.
DISCLAIMER CLAUSE OF SEBI: SEBI only gives its observations on the offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Documents or the offer document. The investors are advised to refer to page 297-298 of the RHP for the full text of the disclaimer clause of SEBI.
DISCLAIMER CLAUSE OF BSE (The Designated Stock Exchange): It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHPhas been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the page 300 of the RHP for the full text of the disclaimer clause of the BSE Limited.
DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 300 of the RHP for the full text of the disclaimer clause of NSE.
For further details in relation to the Company, BRLM, Company Secretary and Compliance Officer of the Corporation, availability of application forms and RHP, please refer to statutory advertisement published on May 6, 2022.
