Venus Pipes and Tubes Limited (VPTL), one of the leading stainless steel pipe and tube manufacturers, has been approved by market regulator Sebi to raise funds through an initial public offering (IPO).According to market sources, the company’s fundraising will be between Rs 175-225 crore.Venus Pipes and Tubes Limited is one of the country’s growing stainless steel pipe manufacturers and exporters, with over six years of experience in the manufacture of stainless steel pipe products, divided into two main categories, namely Seamless Pipe/Tube; and Welded Pipe/Pipe .The company prides itself on offering its broad product range to more than 20 countries around the world.The size of the offer includes the sale of 5.074 million shares of the company.Proceeds from the issuance of Rs 1,059.9 crore will be used to fund capacity expansion and backward integration of hollow tube manufacturing, and Rs 250 crore will be used for working capital requirements other than general corporate purposes.VPTL currently produces five product lines, namely Stainless Steel High Precision Heat Exchanger Tubes; Stainless Steel Hydraulic and Instrumentation Tubes; Stainless Steel Seamless Tubes; Stainless Steel Welded Tubes; and Stainless Steel Box Tubes.The company supplies its products under the “Venus” brand and is used in a variety of industries including chemical, engineering, fertilizer, pharmaceutical, power, food processing, paper and oil and gas.Products are sold both domestically and internationally directly to customers or through traders/stockists and authorized distributors.They are exported to 18 countries including Brazil, the UK, Israel and EU countries.The company has a manufacturing unit strategically located on the Bhuj-Bhachau highway near the ports of Candela and Mundra.The manufacturing facility has a separate seamless and welding department with the latest product-specific equipment and machinery, including tube mills, pilger mills, wire drawing machines, swaging machines, tube straighteners, TIG/MIG welding systems, plasma welding systems, and more .The annual installed capacity is 10,800 metric tons.Also, it has warehouse facilities in Ahmedabad.VPTL’s operating income rose 73.97% to Rs 3,093.3 crore in FY 2021 compared to Rs 1,778.1 crore in FY 2020, mainly due to domestic and export demand, while its net profit jumped to FY 2021 from Rs 413 crore in FY 2020 23.63 crore for the year.SMC Capitals Limited was the sole book-running lead manager for this issue.The company’s equity is planned to be listed on BSE and NSE.
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