Venus Pipes & Tubes Limited IPO

Venus Pipes & Tubes Limited

14,996/46 shares
Minimum Investment

IPO Details

IPO date:
11th May to 13th May, 2022

Issue size:
Rs 165.42 crores

Listing at:

Retail quota:

IPO price:
Rs 310 - Rs 326 per equity share

Minimum lot size:
46 equity shares and in multiple of 46 equity shares thereafter

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Company Background

Venus Pipes & Tubes Limited is one of the growing stainless steel pipes and tubes manufacturer and exporter in India. The company has over six years of experience in manufacturing of stainless steel tubular products in two broad categories: (i) seamless tubes/pipes; and (ii) welded tubes/pipes, under which the company is currently manufacturing five product lines, namely, (i) stainless steel high precision & heat exchanger tubes; (ii) stainless steel hydraulic & instrumentation tubes; (iii) stainless steel seamless pipes; (iv) stainless steel welded pipes; and (v) stainless steel box pipes (“Products”).

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Under its brand name “Venus”, the company supplies products for applications in diverse sectors including (i) chemicals, (ii) engineering; (iii) fertilizers; (iv) pharmaceuticals, (v) power, (vi) food processing; (vii) paper; and (viii) oil and gas.

Venus Pipes & Tubes Limited sell products both in the domestic as well as the international markets. In the domestic market, the company sells products to customers as well as traders/stockists while in the international market it supplies products through traders/stockists and authorized distributors that engage with the company on an exclusive basis and certain marketing representatives.

The company started exporting its products in the year 2017 and as on February 28, 2022 the company has exported to 20 countries including Brazil, UK, Israel and countries in the European Union, etc.

Let us now look at a few competitive strengths and strategies of Venus Pipes & Tubes Limited...

Competitive Strengths

+ International Accreditations and Product Approvals : Venus Pipes & Tubes Limited is one of the growing brands in stainless steel pipes/tubes having presence in both seamless pipes and welded pipes/tubes segments. It follows international standard manufacturing practises and its Manufacturing Facility benefits from the quality benchmarking certifications such as (i) ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 from Bureau Veritas, a third-party inspection organization accredited by the United Kingdom Accreditation Service; (ii) certification under the Indian Boiler Regulation (“IBR”) for manufacturing and supply of stainless steel seamless and welded pipes; and (iii) PED 2014/68/EU and ADW/AD 2000 –Merkblatt W0 from TUV, which is a requirement for supply in the European Union countries.
Such practices and accreditations, coupled with its technical capabilities and know-how enable the company to manufacture products for both domestic and international customers as per ASTM (US), EN (Europe), JIS (Japan) and DIN (Germany) standards. The company’s capabilities and accreditations have enabled to supply its Products to 57 Fortune India 500 companies in the past across sectors, including chemicals, engineering, pharmaceuticals, oil & gas, etc., and as of February 28, 2022, it has orders for supplying its products to 16 Fortune India 500 companies along with orders with other market players and business entities that follow stringent quality standards.

+ Specialised Production of Stainless Steel Pipes and Tubes : The company is a pipes and tubes manufacturer with the sole focus on manufacturing of welded and seamless pipes in a single metal category, i.e., stainless steel. As the company is catering to customers (both domestic and international) in only one metal segment since its inception, over the years it has built expertise in terms of production process, inventory management and marketing of products in the stainless steel pipes and tubes segment.
This gives the company benefit of segment expertise thereby placing it in a position of advantage vis-à-vis its competitors in accurately assessing and responding to customer preferences in this segment as there are very few manufacturers in the single metal product segment. The company believes that this focus has well positioned it in attracting and retaining customers with requirements for specialised stainless steel pipes and tubes including continued client interest from emerging sectors like chemical, petrochemicals, engineering, oil and gas, fertilizers, food processing, pharmaceuticals, power etc.

+ Multi-fold demand of Products : The demand for the company’s products in ordinary course of business is generated from three broad categories:
i. New projects: The company supplies products for new projects across a diversified range of sectors, including but not limited to, oil and gas, pharmaceuticals, engineering, chemical, etc.,
ii. Repair and maintenance: It regularly supplies its products to existing / new customers consequent to normal wear and tear of the products being used by them.
iii. Replacement: Most of its products are used in the transportation of highly corrosive fluids, requiring production in compliance with applicable quality standards. Due to their application in highly corrosive environment, these products slowly corrode throughout their calculated design life. After the designed service life of a particular piping bundle of any project is over, it is essential to replace the entire piping with new pipes.
The company believes that the demand from the aforesaid categories ensures a strong order book on a year-on-year basis. Further, considering the number of sectors serviced by the company, it believes that the demand for its products shall increase in the future placing it in a competitive position.

+ Customer Diversification : The company sells its products both in the domestic as well as the international markets. In the domestic market, it sells products to the end customers as well as traders/stockists while in the international market it supplies them through traders/stockists, authorized distributors and through certain marketing representatives in the European Union market. The company started exporting its products in the year 2017 and as on February 28, 2022 it has exported to 20 countries including countries in European Union, Brazil, UK, Israel etc. In order to increase its share in the international market, Venus Pipes & Tubes Limited appointed sole distributors in markets like Italy and Kuwait in addition to appointing marketing representatives for the European market.

+ Experienced and Qualified Team : The company’s promoters and senior management team is well experienced in this industry both from marketing and distribution of products in this sector. Its promoters, Megharam Sagramji Choudhary, Jayantiram Motiram Choudhary, Dhruv Mahendrakumar Patel and Arun Axaykumar Kothari are first generation entrepreneurs, and have an average experience of approximately 8 years in stainless steel welded/seamless pipes and tubes industry in addition to expertise in marketing, procurement, finance, accounting and customer relationship management.

Key Strategies

Here are a few strategies Venus Pipes & Tubes has for its business:

Increasing existing capacity
Backward integration and cost optimization to improve margins
Tap new geographies to increase export
Continue to improve operating efficiencies through technology enhancements
Strengthen its brand value

And finally here’s a look at key financials of Venus Pipes & Tubes Ltd.

Venus Pipes & Tubes Limited Financials

Revenue from operations

Particulars (in Rs. million)

Particulars (in Rs. million)

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Venus Pipes & Tubes Limited Ltd FAQs

The Venus Pipes & Tubes Limited IPO has an issue size of Rs. 165.42 crore. The IPO opens for subscription on 11th May 2022, and ends on 13th May 2022.

Allotment dates are yet to be announced

Kfin Technologies Limited is the registrar for this IPO.

The dates are yet to be decided.

You can read more about Venus Pipes & Tubes Limited and its IPO from the company’s red herring prospectus (RHP) here