Shares of Venus Pipes & Tubes Ltd climbed 2.17% to Rs 1,318.30 on Tuesday following the company’s announcement of a successful Rs 71.4 crore equity infusion through the conversion of warrants into equity shares.
In a regulatory filing, Venus Pipes said it has completed the conversion of 4,20,000 warrants into equity shares at an issue price of Rs 1,700 per share, marking the final tranche of a preferential issue that was first announced on February 28, 2024. The infusion reflects the strong confidence of the promoter and non-promoter group entities in the company’s long-term growth strategy.
Commenting on the development, Arun Kothari, Chairman and Managing Director, said:
“We are pleased to announce the successful completion of this fund infusion, reinforcing our commitment to Venus’s continued growth and success. This investment will support the planned capex, bolster the company’s financial strength, fuel growth, and improve operational capabilities.”
The company said the funds will be utilized for capacity expansion, operational improvements, and strengthening its balance sheet, enabling Venus to capitalize on emerging opportunities in both domestic and global stainless steel pipe and tube markets.
At the time of writing, Venus Pipes & Tubes held a market capitalization of Rs 27.17 billion, with the stock trading between Rs 1,291.60 and Rs 1,329.70 during the session.
Venus Pipes manufactures stainless steel seamless and welded tubes and pipes used across industries and exports to over 30 countries, including Brazil, the UK, Israel, and EU nations.
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