Venus Pipes & Tubes said it has collected over Rs 49 crore from anchor investors ahead of its initial share sale which will open for public subscription on Wednesday.
The company has decided to allocate 15,22,186 shares at Rs 326 per share to anchor investors, taking the transaction size to Rs 49.62 crore, according to a circular uploaded on BSE website.
Nippon India Small Cap Fund, Kotak Mahindra Life Insurance Company Ltd & India SME Investments – Fund I are the investors which participated in the anchor book.
The public issue comprises sale of 50.74 lakh fresh equity shares of the company and there is no offer for sale (OFS) component.
The public issue, with a price band of Rs 310-326 a share, will be open during May 11-13. At the upper end of the price band, the company is expected to mop up Rs 165.41 crore.
Proceeds from the issue will be used for financing the project cost towards capacity expansion and backward integration for manufacturing of hollow pipes, to meet working capital requirements and for general corporate purposes.
Investors can bid for a minimum of 46 equity shares and in multiples of 46 thereafter.
The Gujarat-based company is a growing stainless-steel pipes and tubes manufacturer and exporter in India having about six years of experience in manufacturing of stainless-steel tubular products in two broad categories — seamless tubespipes; and welded tubes or pipes.
The company, under the brand name Venus, supplies its products for applications in diverse sectors including chemicals, engineering, fertilizers, pharmaceuticals, power, food processing, paper and oil and gas.
For the financial year ended March 31, 2021, the revenue from operations stood at Rs 309.33 crore, with a net profit of Rs 23.63 crore. For nine months ended December 31, 2021, the revenue from operations was Rs 276.76 crore and net profit at Rs 23.59 crore.
SMC Capitals is the sole book running lead manager to the issue. The equity shares of the company are proposed to be listed on BSE and NSE.