Venus Pipes and Tubes looks to raise capital for expansion via IPO

The offer size of the initial public offering is likely to be between Rs 175-Rs 225 crore, according to sources privy to the development.

Email queries sent to the company and SMC Capital remained unanswered till press time on Tuesday. 
Email queries sent to the company and SMC Capital remained unanswered till press time on Tuesday. 

By Ruchit Purohit

Gujarat-based Venus Pipes and Tubes (VPTL) is expected to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) this week, people aware of the development told FE. The offer size of the initial public offering is likely to be between Rs 175-Rs 225 crore, according to sources privy to the development.

The maiden public offer of the company is expected to be a completely fresh issue of shares. Further, the company plans to utilise the proceeds for expansion. According to the sources, SMC Capital is the investment banker to the public issue. “It is proposing to expand its 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),” said sources.

Email queries sent to the company and SMC Capital remained unanswered till press time on Tuesday. VPTL is a stainless steel pipe and tubes manufacturer and exporter in the country, with six years of experience in manufacturing stainless steel tubular products in two broad categories, namely seamless tubes/pipes and welded tubes/pipes.

It further supplies its products to over 23 countries internationally, according to the information available on the company’s website. The company mainly manufactures five product lines — stainless steel high precision and heat exchanger tubes, stainless steel hydraulic and instrumentation tubes, stainless steel seamless pipes, stainless steel welded pipes, and stainless steel box pipes.

It further supplies its products for applications in diverse sectors, including chemicals, engineering, fertilisers, pharmaceuticals, power, food processing, paper, and oil and gas. The company’s total income in FY2021 stood at Rs 309.33 crore, whereas the net profit stood at Rs 23.63 crore.

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