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IPO Screener: Issues of Delhivery, Venus Pipes close today

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Delhivery subscribed just 23 per cent; Venus Pipes 4x at the end of day 2

The initial public offerings of Delhivery and Venus Pipes and Tubes will close for subscription today. While the supply chain major saw its issue subscribing just 23 per cent so far, the IPO of Venus Pipes already subscribed over 4 times.

The IPO of Delhivery received bids for 1.45 crore shares against 6.25 crore shares on offer.

Lukewarm response

While the portion reserved for retail individual investors (RIIs) received bids for 40 per cent, quotas set aside for qualified institutional buyers’ segment and non-institutional investors got 29 per cent and just 1 per cent respectively.

The company’s ₹5,235-crore public issue, which comprises a fresh issue of up to ₹4,000 crore and an offer for sale of up to ₹1,235 crore, has come out with a price range ₹ 462-487 per share.

Under the OFS, investors Carlyle Group and SoftBank as well as Delhivery’s co-founders will divest their shareholding in the logistics company.

Ahead of the IPO, Delhivery raised ₹2,347 crore from 64 anchor investors.

Utility of funds

Proceeds of the fresh issue will be used towards funding organic growth initiatives, funding inorganic growth through acquisitions and other strategic initiatives and for general corporate purposes.

Venus gets strong response

Meanwhile, the IPO of Venus Pipes and Tubes saw strong response, as it subscribed 4.43 times on day 2 of subscription on Thursday. The IPO is of 50,74,100 equity shares and has a price range of ₹310-326 per share.

The category for retail investors received 7.52 times subscription, while the portion for non-institutional investors got subscribed 2.61 times and qualified institutional buyers 36 per cent.

Venus Pipes and Tubes has collected over ₹49 crore from anchor investors.

To finance project cost

Proceeds from the issue will be used for financing the project cost towards capacity expansion and backward integration for manufacturing of hollow pipes, to meet working capital requirements and for general corporate purposes.

The Gujarat-based company is a growing manufacturer and exporter of stainless steel pipes and tubes in India.

Morgan Stanley India Company, Kotak Mahindra Capital Company, BofA Securities India and Citigroup Global Markets India are the managers to the offer.

Published on May 13, 2022

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