Venus Pipes hits new high, up 47% in two weeks on getting BIS certification




Shares of Venus Pipes & Tubes hit a new high of Rs 586.65 on the BSE, as the stock rallied 11 per cent in Tuesday’s intra-day trade on healthy business outlook. In the past two weeks, the stock has rallied 47 per cent as the company on September 10, 2022 said that it has become the first Indian company to receive Bureau of Indian Standards (BIS) approval for stainless steel seamless and welded pipes and tubes.


The stock of iron & steel products company is now trading at its highest level since its listing on May 24, 2022. The stock has zoomed 80 per cent against its issue price of Rs 326 per share. The stock had hit a 52-week low of Rs 316.40 hit on June 1, 2022.


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


Venus Pipes & Tubes 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 (SS). 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.


Venus Pipes had raised Rs 165-crore initial public offer (IPO) proposed to utilize the net proceeds from the issue towards financing the project cost towards capacity expansion, technological upgradation, cost optimization of operations and backward integration for manufacturing of hollow pipes amounting Rs 108 crore. The company also aims to meet long-term working capital requirements amounting Rs 25 crore and balance towards general corporate purposes.


China is the largest exporter of SS tubes and pipes to India and accounted for 54 per cent of total imports in FY2021. Effective May 2021, the Chinese government cancelled export rebates (13 per cent) on seamless pipes and tubes and other steel products to encourage Chinese steel manufacturers to focus on the domestic market. This move is expected to benefit steel pipe and tube manufacturers in India as Chinese steel becomes costlier.


The cancellation of export tax rebates would encourage Chinese steel manufacturers to turn to the domestic market and would reduce domestic production of various steel products for export. Moreover, only BIS certified products can now be used for all projects in the country, which may lead to import substitution, Venus Pipes said in FY22 annual report.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Comments are closed.