Venus Pipes and Tubes
Mainboard₹165 Cr issue
+2.76%
Listing gain over issue price
Issue size
₹165 Cr
1 lot at cut-off
₹14,996
Lot size
46shares
Open
11 May 2022
Close
13 May 2022
Allotment
19 May 2022
Listing
24 May 2022
Listing performance
Issue price
₹326
Listed at
₹335
Listing-day close
₹354.35
Latest price
₹1,712.10
Close on 23 Oct 2026
Listing gain
+2.76%
Return since issue
+425.18%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 11 May 2022 – 13 May 2022
- Listing date
- 24 May 2022
- Face value
- ₹10 per share
- Issue price
- ₹326 per share
- Lot size
- 46 shares
- Total issue size
- ₹165 Cr
- Market cap at offer price
- ₹662 Cr
- Promoter holding
- 64.27% → 48.20% pre-issue → post-issue
- ISIN
- INE0JA001018
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- SMC Capitals Ltd.
- Registered office
- Survey No.233/2 and, 234/1, Dhaneti, Bhuj, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 15,22,186 | — | — |
Application size
Minimum 46 shares per lot, in multiples, at ₹326
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 46 | ₹14,996 |
| Retail (max) | 13 | 598 | ₹1,94,948 |
| S-HNI (min) | 14 | 644 | ₹2,09,944 |
| S-HNI (max) | 66 | 3,036 | ₹9,89,736 |
| B-HNI (min) | 67 | 3,082 | ₹10,04,732 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
15,22,186
Anchor portion
₹49.62 Cr
at ₹326 per share
Valuation and performance
Valuation at offer price
₹326 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 18.04 | — |
| P/E (×) | 18.07 | — |
| Market cap | — | ₹662 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 59.18%
- ROCE
- 61.00%
- Debt / equity
- 0.94
- PAT margin
- 7.57%
- EBITDA margin
- 11.24%
- NAV per share
- ₹30.48
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Venus Pipes and Tubes
Venus Pipes & Tubes Limited is a stainless steel pipes and tubes manufacturer incorporated in February 2015 and converted to a public company in September 2021. The company manufactures five product lines: stainless steel high precision & heat exchanger tubes, stainless steel hydraulic & instrumentation tubes, stainless steel seamless pipes, stainless steel welded pipes, and stainless steel box pipes. Operating from a single manufacturing facility in Dhaneti, Kutch, Gujarat, the company supplies its products under the brand name 'Venus' to customers in chemicals, engineering, fertilizers, pharmaceuticals, power, food processing, paper, and oil and gas sectors. The company has over six years of commercial operating experience and serves both domestic and international markets including the European Union, Brazil, United Kingdom, and Israel.
Company Analysis
from RHPVenus Pipes & Tubes Limited is a stainless steel pipes and tubes manufacturer and exporter in India, producing both seamless and welded tubular products for diverse industrial applications.
Venus Pipes & Tubes Limited is a stainless steel pipes and tubes manufacturer incorporated in February 2015 and converted to a public company in September 2021. The company manufactures five product lines: stainless steel high precision & heat exchanger tubes, stainless steel hydraulic & instrumentation tubes, stainless steel seamless pipes, stainless steel welded pipes, and stainless steel box pipes. Operating from a single manufacturing facility in Dhaneti, Kutch, Gujarat, the company supplies its products under the brand name 'Venus' to customers in chemicals, engineering, fertilizers, pharmaceuticals, power, food processing, paper, and oil and gas sectors. The company has over six years of commercial operating experience and serves both domestic and international markets including the European Union, Brazil, United Kingdom, and Israel.
stainless steel manufacturingpipes and tubeschemicalsengineeringfertilizerspharmaceuticalspowerfood processingpaperoil and gas
Objects of the Issue
- Financing the project cost towards capacity expansion and backward integration for manufacturing of hollow pipes ₹1,079.45 million p.20
- To meet the working capital requirements ₹250.00 million p.20
- General corporate purposes ₹149.46 million p.20
- 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 ₹1,079.45 million p.90
- To meet the long-term working capital requirements ₹250.00 million p.90
- General corporate purposes ₹149.46 million p.90
- Funding capex for LSAW(A358) Plant for welded pipes to increase production capacity from 600 MT per month to 1200 MT per month p.147
- Funding capex for Pilger Plant for seamless pipes to increase production capacity from 300 MT per month to 800 MT p.147
- Funding capex for piercing line for manufacturing of hollow pipes with capacity of 800 MT per month as backward integration strategy ₹ 106.21 million p.148
- Funding capex for installation of LSAW (A358) Plant to increase welded pipes production capacity from 600 MT per month to 1200 MT per month by manufacturing higher diameter welded pipes up to 1,219.2 mm p.261
- Funding capex for installation of pilger plant to increase seamless pipes production capacity from 300 MT per month to 800 MT per month by manufacturing higher diameter seamless pipes up to 168.3 mm p.261
- General corporate purposes
- Funding capex for capacity expansion and technological upgradation of manufacturing facilities ₹1,079.45 million (planned for Fiscal 2023) p.288
Issue Structure
- Total Issue
- ₹1,654.16 million
- Fresh Issue
- Fresh Issue of up to 5,074,100 Equity Shares aggregating up to ₹1,654.16 million
- Offer for Sale
- Not applicable
- Price Band
- ₹310 (Floor Price) to ₹326 (Cap Price) per Equity Share
- Lot Size
- 46 Equity Shares and in multiples of 46 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and sells stainless steel tubular products (seamless and welded pipes/tubes) for industrial applications. Revenue is derived from sale of manufactured products to diverse industrial sectors both domestically and internationally. The business model involves procurement of raw materials (stainless steel coils and hollow pipes), manufacturing through welding and seamless processes, and distribution through stockists, traders, and distributors.
Business Segments
Manufacture of high precision and heat exchanger tubes for industrial applications
Manufacture of hydraulic and instrumentation tubes for industrial applications
Manufacture of seamless stainless steel pipes for industrial applications
Manufacture of welded stainless steel pipes for industrial applications
Manufacture of stainless steel box pipes for industrial applications
Manufactures welded steel pipes and tubes up to 219.3 mm diameter. Current capacity is 600 MT per month, proposed to be expanded to 1,200 MT per month.
Manufactures seamless steel pipes and tubes up to 114.3 mm diameter. Current capacity is 300 MT per month, proposed to be expanded to 800 MT per month.
Used in different kinds of heat exchangers and pressure vessels, manufactured as both seamless and welded tubes with outside diameter range 6 mm to 101.6 mm, applicable to heat exchangers, pressure vessels, chemical and fertilizer, marine equipment, refinery and petrochemical, process industry, dairy/pharmaceutical industry, nuclear power generation, automotive and aerospace.
Used in very high pressure applications, manufactured as seamless tubes with outside diameter range 6 mm to 76 mm, applicable to nuclear & thermal power generation, oil and gas, process industries, chemical and fertilizer, food & beverage processing, automotive, aerospace, and medical pharmaceutical.
Used by industries having high pressure applications, manufactured as seamless pipes with size 1/8″ NB to 4″ NB, applicable to onshore and offshore oil and gas production, exploration and transport (OCTG), chemical & petrochemical, energy and power generation, mechanical and plant engineering, marine equipment, pulp & paper, and pharmaceutical industry.
Used by industries having low pressure applications, manufactured as welded pipes with size 1/8″ NB to 8″ NB, applicable to chemical & petrochemical, gas industry, power generation, mechanical and plant engineering, marine equipment, pulp & paper, and pharmaceutical industry.
Used mostly in structural applications, manufactured as welded pipes with size 15 x15 mm to 100x100 mm, applicable to engineering.
Manufacturing of stainless steel welded pipes, stainless steel high precision & heat exchanger tubes, stainless steel hydraulic & instrumentation tubes, stainless steel box pipes, stainless steel seamless pipes, carbon steel pipes, alloy steel pipes, and metallic pipes and tubes; and trading in steel products
Manufacturing of stainless steel seamless pipes and tubes including high precision & heat exchanger tubes and hydraulic & instrumentation tubes up to 114.3 mm diameter
Manufacturing of stainless steel welded pipes and tubes and box pipes up to 219.3 mm diameter
Trading of steel coils, fittings, structural steel, and scrap
Manufacture of seamless pipes and tubes in carbon steel, alloy steel, and stainless steel
Manufacture of welded pipes and tubes in carbon steel, alloy steel, and stainless steel
Trading of structural steel products such as structural beams and angles
SWOT Analysis
Strengths
- • Experienced management in stainless steel industry(p.43)
- • Diversified customer base across multiple sectors(p.20)
- • Strong financial growth trajectory(p.36)
- • Growing presence in international markets(p.36)
- • Promoters' significant ownership stake provides stability and alignment with shareholders(p.46)
- • Insurance coverage in place for significant assets including PP&E and inventory(p.48)
- • Established manufacturing facility with installed capacity of 10,800 MT per annum(p.94)
- • Specialized stainless steel pipe and tube manufacturer with single-metal focus providing segment expertise(p.144)
- • Multi-fold demand drivers from new projects, repair/maintenance, and replacement ensuring consistent order book(p.144)
- • Diversified customer base across 20 countries and multiple sectors hedges sector-specific risks(p.146)
- • High capacity utilization rates (90%+ for seamless, 92%+ for welded in 9M FY2022) indicate strong market demand(p.157)
- • International accreditations and certifications (ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, PED 2014/68/EU, IBR certified)(p.159)
- • Strategic manufacturing location 55-75km from major ports (Kandla, Mundra) reducing logistic costs(p.142)
- • Strong revenue and profitability growth with PAT increasing from ₹37.50mn (FY2019) to ₹235.95mn (9M FY2022)(p.143)
Weaknesses
- • High customer concentration risk(p.28)
- • Lack of long-term customer and supplier contracts(p.29)
- • Geographic concentration of domestic revenues(p.32)
- • Dependence on single manufacturing facility(p.40)
- • Past environmental law non-compliance(p.30)
- • High raw material cost exposure(p.39)
- • Limited operating history in competitive market(p.30)
- • Heavy dependence on promoter guarantees for credit facilities, creating personal liability risk(p.46)
- • Significant negative operating cash flows in recent years(p.47)
- • History of credit rating downgrades across multiple rating agencies(p.52)
- • Unsecured related-party loan of ₹80 million can be recalled at any time(p.53)
- • Dependence on leased premises with short-term lease agreements and renewal uncertainty(p.50)
- • Delayed statutory filings and discrepancies in compliance history(p.54)
- • Exposure to disputes with employees and regulatory authorities regarding provident fund dues(p.51)
- • Group companies have incurred significant losses in recent years(p.57)
- • Heavy dependence on stockist/traders channel (48.37% of revenue in 9M FY2022) creates channel concentration risk(p.145)
- • Significant geographic revenue concentration in Gujarat (67% of domestic revenue in FY2021)(p.145)
- • Limited operating history of only 6 years creates brand establishment disadvantage versus established peers(p.150)
- • No long-term raw material supply agreements creating pricing volatility exposure(p.157)
- • Dependence on third-party vendor for solution annealing process creates operational vulnerability(p.155)
- • Historical non-compliance with environmental regulations requiring timely consent renewals(p.158)
- • High dependence on top 10 customers for significant revenue(p.290)
- • Significant customer concentration in prior years(p.25)
- • Rising debt obligations with increased financing costs(p.283)
- • High inventory accumulation impacting working capital(p.285)
- • Pending environmental compliance approval for capacity expansion(p.297)
- • Low cash reserves for operations(p.284)
Opportunities
- • Low per capita stainless steel consumption in India(p.20)
- • Capacity expansion and backward integration strategy(p.43)
- • Potential for geographic expansion in international markets(p.36)
- • Strategy for increasing exports and new geographies(p.36)
- • Capacity expansion from 600 MT/month to 1200 MT/month for welded pipes and 300 MT/month to 800 MT/month for seamless pipes(p.94)
- • Backward integration through establishment of hollow pipe manufacturing capability(p.94)
- • Cost optimization through in-house slitting capability for steel strips(p.94)
- • Expansion of product portfolio to include higher diameter welded and seamless pipes(p.94)
- • International market penetration through exclusive distribution agreements(p.57)
- • Capacity expansion to higher diameter pipes (welded up to 1219.2mm, seamless up to 168.3mm) addressing larger customer segments(p.147)
- • Backward integration through piercing line for hollow pipe manufacturing improving margins and reducing import dependence(p.148)
- • Government PLI schemes and DMISP policy preference for domestic manufacturing boosting demand(p.147)
- • Expected industry growth from 1.1 to 1.6 million tonnes by 2026 at 8.5% CAGR from infrastructure and end-user demand(p.148)
- • Benefit from Chinese export tax rebate cancellation reducing Chinese competition in international markets(p.149)
- • Substantial ₹111 trillion National Infrastructure Pipeline investment supporting end-user demand across oil & gas, pharmaceuticals, chemicals(p.148)
- • Pharma sector PLI scheme (₹69.40bn incentive FY2021-2030) driving demand for SS pipes in pharmaceutical applications(p.139)
- • Growing city gas distribution (CGD) network creating demand for ERW pipes in natural gas infrastructure(p.130)
- • Planned significant capacity expansion to meet growing demand(p.297)
- • Diversification into new product segments(p.282)
- • Cost optimization through technological upgradation(p.297)
- • Operating profitability growth trajectory(p.283)
Threats
- • COVID-19 pandemic impact and future outbreaks(p.28)
- • Intense competition from established competitors(p.29)
- • Volatility in steel prices and demand(p.31)
- • Foreign exchange risks and regulatory restrictions on Chinese trade(p.37)
- • Technological obsolescence risk(p.31)
- • Regulatory and environmental compliance risks(p.43)
- • Pending CTE amendment approval for capacity expansion(p.43)
- • Volatility in raw material costs and foreign exchange fluctuations affecting profitability(p.59)
- • Dependence on state electricity supply with limited backup capacity(p.56)
- • Water supply constraints from dependence on private tanker suppliers without long-term arrangements(p.56)
- • Customer credit risks and default exposure in credit sales model(p.54)
- • Economic and regulatory uncertainties in India affecting business environment(p.59)
- • Health and safety compliance requirements and potential operational disruptions(p.51)
- • Competition law risks and potential adverse application of Competition Act provisions(p.60)
- • Risks from natural disasters and civil unrest in India(p.59)
- • Liability risks from worker safety hazards in manufacturing operations(p.55)
- • COVID-19 pandemic uncertainty and potential operational impacts(p.59)
- • Regulatory delay risk: CTE amendment application pending with GPCB for capacity expansion affecting implementation schedule(p.104)
- • Intense competition from established domestic players (Ratnamani, Jindal SAW) with greater financial resources and better market reach(p.161)
- • Low-cost Chinese imports creating pricing pressure and material harm to domestic industry(p.139)
- • Raw material price volatility and import dependency (85% oil import dependence) affecting input costs(p.142)
- • Industry cyclicality and economic downturn risk: COVID-19 caused domestic SS production decline of 19.4% in 2020(p.136)
- • Rising interest rates and RBI monetary policy tightening reducing capital investment in sector(p.139)
- • Regulatory non-compliance risks: CCA and environmental approvals critical for Manufacturing Facility operations(p.158)
- • Geopolitical risks from Russia-Ukraine conflict threatening global GDP growth and crude oil supply(p.117)
- • Exposure to foreign exchange volatility in operations(p.289)
- • Interest rate risk on floating-rate borrowings(p.289)
- • Intensive competition from local and foreign competitors(p.290)
- • Credit risk from customer defaults affecting working capital(p.289)
- • Regulatory compliance risk for manufacturing operations(p.297)
- • Liquidity risk and reliance on short-term borrowings(p.290)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Megharam Sagramji Choudhary | Promoter | 22.98% | — |
| Jayantiram Motiram Choudhary | Promoter | 7.74% | — |
| Dhruv Mahendrakumar Patel | Promoter | 16.95% | — |
| Arun Axaykumar Kothari | Promoter | 7.96% | — |
| Payal Kothari | Promoter Group | 7.62% | — |
| Jyoti Rakesh Lahoti | Promoter Group | 0.99% | — |
| Vishwa Jeet Jhanwar | Promoter Group | 0.02% | — |
| Megharam Sagramji Choudhary | Promoter | 22.98% | 17.23% |
| Dhruv Mahendrakumar Patel | Promoter | 16.95% | 12.72% |
| Jayantiram Motiram Choudhary | Promoter | 7.74% | 5.81% |
| Arun Axaykumar Kothari | Promoter | 7.96% | 5.97% |
| Payal Kothari | Promoter Group | 7.62% | 5.72% |
| Megharam Sagramji Choudhary | Promoter | — | — |
| Jayantiram Motiram Choudhary | Promoter | — | — |
| Dhruv Mahendrakumar Patel | Promoter | — | — |
| Arun Axaykumar Kothari | Promoter | — | — |
| Megharam Sagramji Choudhary | Promoter | 20.92% | 22.98% |
| Jayantiram Motiram Choudhary | Promoter | 14.71% | 7.74% |
| Dhruv Mahendrakumar Patel | Promoter | 5.18% | 16.95% |
| Arun Axaykumar Kothari | Promoter | — | 7.96% |
| Megharam Sagramji Choudhary | Promoter | — | — |
| Dhruv Mahendrakumar Patel | Promoter | — | — |
| Jayantiram Motiram Choudhary | Promoter | — | — |
| Arun Axaykumar Kothari | Promoter | — | — |
Leadership
Megharam Sagramji Choudhary · Promoter
Jayantiram Motiram Choudhary · Promoter
Dhruv Mahendrakumar Patel · Promoter
Arun Axaykumar Kothari · Promoter
Pavan Kumar Jain · Company Secretary and Compliance Officer for the Issue
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Venus Pipes and Tubes IPO FAQs
What is the lot size of Venus Pipes and Tubes IPO?
The minimum lot size of Venus Pipes and Tubes IPO is 46 shares. One lot costs ₹14,996 at the cut-off price.
When does Venus Pipes and Tubes IPO open and close?
Venus Pipes and Tubes IPO opened for subscription on 11 May 2022 and closed on 13 May 2022.
What is the listing date of Venus Pipes and Tubes IPO?
Venus Pipes and Tubes IPO listed on 24 May 2022.