About the Company:
Venus Pipes and Tubes Ltd one of the growing stainless steel pipes and tubes manufacturer and exporter in India having over six years of experience in manufacturing of stainless steel tubular products
Company 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.
Company caters to customers from emerging sectors like chemical, petrochemicals, engineering, oil and gas, fertilizers, food processing, pharmaceuticals, power etc.
Company started exporting the Products in the year 2017 and have exported to 18 countries including countries in European Union, Brazil, UK, Israel etc.
Company’s Manufacturing Facilities:
Company has one manufacturing plant which is strategically located at Bhuj-Bhachau highway, Dhaneti (Kutch, Gujarat) in close proximity, around 55 kilometers and 75 from the ports of Kandla and Mundra, respectively, that helps in reducing our logistic costs on procurement of raw materials and
imports and export of our Products.
As of October 31, 2021, company’s Manufacturing Facility has a total installed capacity of 10,800 MT per annum.
Company’s Customers:
Company’s capabilities and accreditations have enabled company to supply the Products to 54 Fortune India 500 companies in the past across sectors, including chemicals, engineering, pharmaceuticals, oil & gas, etc., and as of October 31, 2021.
Company’s revenue from Domestic and International Markets:
Company sells Products both in the domestic as well as the international markets.
In the domestic market, company sell the Products to customers as well as traders/stockists while in the international market we supply Products through traders/stockists and authorized distributors that engage with us on an exclusive basis and certain marketing representatives.
Company started exporting Products in the year 2017 and as on October 31, 2021 we have exported to 18 countries including Brazil, UK, Israel and countries in the European Union, etc.
In order to increase share in the international market, company has appointed sole distributors in overseas markets like Italy and Kuwait in addition to appointing marketing representatives for the European market.
The revenues from exports aggregated to Rs.14.7 crores in Fiscals 2021,and as a percentage of revenue from operations, were 4.78%.
Export Obligations:
Company has export obligations amounting to Rs.101 crores as on October 31, 2021.
The following is the state-wise segregation of revenues for the Fiscals 2021, 2020 and 2019, respectively:
Company’s Proposed Plants:
Company is proposing to expand the existing manufacturing capacity for welded pipes/tubes and seamless pipe/tubes by manufacturing higher diameter welded pipes (up to 1219.2 mm) and seamless pipes (up to 168.3 m).
The following is a brief description of the machineries that are proposed to be procured for the purposes of increasing the production capacity of the welded as well as seamless pipes/tubes:
Installed Capacity and Capacity Utilization:
Competition in the Business:
Ratnamani Metals & Tubes Limited, Jindal SAW, Maharashtra Seamless Limited, Man Industries and Welspun Corp are few of the major players in Indian steel pipe & tube segment.
All these companies have a wide product portfolio, offering SAW, welded, seamless and stainless-steel pipes and tubes.
Among these, Ratnamani and Jindal SAW have an established stainless steel pipes and tubes business, placing them as market leaders in this segment.
Management Team:
- Mr. Jayantiram Motiram Choudhary (Designation: Chairman and Non- Executive Director)
- Mr. Arun Axaykumar Kothari (Designation: Managing Director)
Objectives of the Issue:
Fresh Issue: (Rs. 165.4 cr)
- Financing the project cost towards capacity expansion, technological upgradation, cost optimization of our operations and support to the manufacturing facility and backward integration for manufacturing of hollow pipes.
- To meet long-term working capital requirements.
- General corporate purposes, subject to the applicable laws.
Positives for the Company:
Increasing existing capacity.
Company is proposing to expand the existing manufacturing capacity for welded pipes/tubes and seamless pipes/tubes for manufacturing higher diameter welded pipes/tubes (up to 1219.2 mm) and seamless pipes/tubes (up to 168.3 mm).
The additional production capacities will place company in a competitive position to cater to the demands of existing clients as well as the new customers.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 | 31st Dec 21 |
|---|---|---|---|---|
| Revenue | 120.5 | 179.3 | 312.0 | 278.2 |
| Net Profit | 3.7 | 4.1 | 23.6 | 23.5 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Venus Pipes & Tubes Limited | 10 | 18.04 | 18.11 | 59.18% | 30.48 |
| Jindal Saw Limited | 2 | 10.02 | 9.43 | 4.69% | 218.39 |
| Ratnamani Metal & Tubes Ltd | 2 | 59.07 | 32.06 | 13.9% | 425.35 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 11th May 2022 |
| Issue Closes on:. | 13th May 2022 |
| Issue Price | Rs.310 – 326 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 46 shares |
| Minimum Investment | Rs. 14,996 |
| Issue Constitutes | 25% |
| Issue Size | Rs. 165 cr |
| Market Cap | Rs. 661 cr |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 50,74,100 (Rs.165.4 cr) |
| Equity Shares Prior to the Issue | 1,52,22,010 |
| Equity Shares after the issue | 2,02,96,110 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 19th May 2022 |
| Initiation of Refunds | on or Before 20th May 2022 |
| Credit of Equity Shares: | on or Before 23rd May 2022 |
| Listing Date: | on or Before 24th May 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 18.04 | 18.11 | 59.18% | 30.48 |
| Check IPO Allotment Status: |
|---|
KfinTech Website: http://kfintech/IPO/Allotment_StatusBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Venus Pipes and Tubes Ltd Address: Survey No. 233/2 and 234/1, Dhaneti, Bhuj, Kachchh – 370020 Gujarat, India Tel: +91 2836 232 183/84 E-mail: cs@venuspipes.com Website: www.venuspipes.com |
| IPO Registrar Info: |
|---|
| KFIN TECHNOLOGIES PRIVATE LIMITED Selenium, Tower B, Plot No- 31 and 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi 500 032, Telangana, India. Tel: +9140 6716 2222 E-mail: venus.ipo@kfintech.com Website: www.kfintech.com |
