Venus Pipes' stock price up by 47% in the past two weeks

20 Sep 2022 , 11:14 AM

Shares of Venus Pipes & Tubes rose 11% intraday on Tuesday on a positive business outlook, setting a record high of Rs586.65 on the BSE. The stock has increased 47% over the last two weeks as a result of the business’s announcement on September 10, 2022, that it has become the first Indian company to gain Bureau of Indian Standards (BIS) clearance for seamless and welded pipes and tubes made of stainless steel.

Since its initial public offering on May 24, 2022, the stock of the iron & steel products firm is now trading at its highest level. Compared to its issue price of Rs326 a share, the stock has increased by 80%. On June 1, 2022, the stock’s price fell to a 52-week low of Rs316.40.

The management is optimistic about future growth, and with the Trust & Brand created for “Venus”, the company is confident that it will be able to capture a larger percentage of market share going forward. There are plans for capacity expansion, backward integration for higher efficiencies, and a wide range of products for multiple industry applications.

Venus Pipes & Tubes is a producer of pipes and tubes with a singular concentration on producing welded and seamless pipes in the metal category of stainless steel (SS). Under the brand name Venus, the firm provides its products for use in a variety of industries, including engineering, fertilizers, pharmaceuticals, power, food processing, paper, and oil & gas.

Venus Pipes’ initial public offering (IPO) raised Rs165 crore, with the company proposing to use the net proceeds to finance the project’s costs for technological advancement, capacity expansion, operational cost reduction, and backward integration for the production of hollow pipes totaling Rs108 crore. Along with meeting its long-term working capital needs of Rs25 crore, the business also intends to use the remaining funds for general corporate objectives.

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