Venus Pipes shares rise 4% on infusing ₹71.4 crore via warrant conversion

Venus Pipes shares rose 4 per cent after it raised ₹71.4 crore by converting 4.2 lakh warrants

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Shares of Venus Pipes & Tubes gained over 4 per cent on Wednesday after the company raised ₹71.4 crore by converting 4.2 lakh warrants to support its expansion plans. 

 

The iron & steel products maker, Venus Pipes and Tubes' stock rose as much as 4.63 per cent during the day to ₹1,350 per share, the biggest intraday rise since September 22 this year. The stock pared gains to trade 3.9 per cent higher at ₹1,341 apiece, compared to a 0.14 per cent advance in Nifty 50 as of 10:25 AM. 

 

Shares of the company snapped a two-day losing streak and currently trade at 30 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 11.2 per cent this year, compared to a 6.5 per cent advance in the benchmark Nifty 50. Venus Pipes has a total market capitalisation of ₹2,756.19 crore.  CATCH STOCK MARKET UPDATES TODAY LIVE

Venus Pipes completes ₹71.4 crore equity infusion

Venus Pipes & Tubes Ltd. has successfully converted 4,20,000 warrants into equity shares at ₹1,700 per share, raising ₹71.4 crore, the company said in an exchange filing on Tuesday. This follows the receipt of the final tranche of payment from the allotted participant, supporting the company’s planned expansion. 

 

The move highlights the Promoter Group’s strong confidence in Venus’s long-term growth and strategic direction, the company said. "This investment will support the planned capex, bolster the company’s financial strength, fuel growth, and improve operational capabilities," Arun Kothari, chairman & managing director of Venus Pipe, said.  "With this momentum, we are well-equipped to capitalise on new opportunities and consistently deliver value to our customers and stakeholders."  ALSO READ | TCS, Infy, HCL Tech gain 2%; IT index up 5% in 1 week ahead of Q2 results 

Venus Pipes & Tubes reported steady revenue in 1Q FY26, supported by a pickup in the seamless pipe division and exports, Monarch Networth Capital said in its August report. Lower margins were due to higher other expenses and employee costs, it said. 

 

The company has a robust, well-diversified order book of ₹560 crore, including large orders for seamless stainless boiler tubes to meet rising demand from the domestic power sector and exports, Monarch Networth said. New approvals from industries such as oil & gas, energy, hydrogen, and nuclear, along with the addition of new grades, fittings, and increasing export traction, are expected to drive strong growth, it said.