IPO Alert: Venus Pipes & Tubes Limited plans for a public listing

Stainless steel production in India has increased steadily in recent years. The disruption caused by COVID-19 had a negative impact on the industry, but the country remained the second largest stainless steel producer in the first quarter of 2021.

Venus Pipes & Tubes recently filed papers with markets regulator SEBI to raise funds through the sales of its shares. The company plans to sell 50.74 lakh shares through the initial public offering, according to its Draft Red Herring Prospectus.

Venus Pipes & Tubes intends to utilize the net proceeds from the offering to fund capacity expansion and backward integration for the production of hollow pipes. Further, it will use the money to meet working capital requirements and for general corporate purposes.

Company Overview

Venus Pipes & Tubes is a stainless steel pipe manufacturer and exporter, having over six years of experience in the business with a focus on the broad categories of seamless tubes/pipes and welded tubes/pipes.

The Gujarat-based company sells its products under the brand name Venus. They have applications in various industries including chemicals, construction, fertilizers, pharmaceuticals, electricity, food processing, paper and oil & gas. The products are sold both in the domestic market and international market.

Venus Pipes & Tubes’ main competitors are Jindal Saw Limited and Ratnamani Metal & Tubes Limited.

Key Numbers

Venus Pipes & Tubes had total revenues of ₹312 cores in the year ended March 31, 2021, compared to ₹179 crores in the previous year. Its net profit was ₹31 crores, compared to ₹6 crores in the previous year.

Meanwhile, the emergence of modern trade channels like e-commerce may adversely affect the company’s pricing ability, and result in temporary loss of retail

shelf space. It can affect the company’s financial performance.