Vibhor Steel Tubes Ltd. IPO

Vibhor Steel Tubes Ltd.

IPO Listing Details

Listed On

BSE & NSE

Listed On

Issue Price

₹151

Issue Price

Listing Price

₹421

Listing Price

Listing Gains

+₹270.00 (+178.81%)

Listing Gains

IPO Details

Bidding Dates

13 Feb - 15 Feb '24

Bidding Dates

Min. Investment

₹13,959

Min. Investment

Lot Size

99.00

Lot Size

Price Range

₹141 - ₹151

Price Range

Issue Size

67 Cr

Issue Size

Subscription Rate

  • Retail Individual Investor
    188.17x
  • Non-Institutional Investor
    721.34x
  • Qualified Institutional Buyers
    178.73x
  • Employees
    201.48x


About Company

Vibhor Steel Tubes Limited produces and ships a range of steel pipes and tubes, such as Mild Steel/Carbon Steel ERW Black and Galvanized Pipes, Hallow Steel Pipe, and Cold rolled Steel (CR) Strips/Coils. Founded in 2003, the company mainly serves the heavy engineering sector in India. It provides a wide assortment of steel pipes and tubes in different lengths customized to meet customer requirements. Their manufacturing process covers various shapes and sizes, including square, round, rectangular, elliptical, or bespoke designs.

Important Dates - Vibhor Steel Tubes IPO

Application opens on 13th February 2024
Last date of application 15th February 2024
Date of Allotment 16th February 2024
Refund begins from 19th February 2024
Credit of shares to Demat 19th February 2024
Listing date 20th February 2024

Why should you invest in Vibhor Steel Tubes Ltd. IPO?

The company is the main provider of tubes and pipes to Jindal Pipes Ltd. and currently holds a long-term contract spanning approximately 6 years. According to management, this contract isn't exclusive, allowing the company the freedom to sell its products in open markets. The company has shown growth in both its revenue and profit for the periods reported. Considering the annualized earnings for FY24, it seems that the stock is fully valued. Knowledgeable investors might consider investing funds for the medium term.

 

Vibhor Steel Tubes IPO Grey Market Premium

Date GMP
12th February Rs.130
11th February Rs.130
10th February Rs.130

 

Financial Snapshot - Vibhor Steel Tubes IPO

Check out the financial performance of Vibhor Steel Tubes for recent years:

Financial Year Total Assets Total Revenues Net Profit
March 2021 Rs 293.63 crore Rs 1,114.38 crore Rs 21.07 crore
March 2022 Rs 248.54 crore Rs 818.48 crore Rs 11.33 crore
March 2023 Rs 172.93 crore Rs 511.51 crore Rs 0.69 crore


Vibhor Steel Tubes Ltd. IPO - SWOT Analysis

Strengths

  1. The company has a long-standing relationship with Jindal Pipes Limited (JPL), progressing from job-work activities to full-time production of pipes.
  2. Its manufacturing units are strategically located: Unit I in Raigad, Maharashtra, serves as the exclusive export center, while Unit II near Hyderabad in Mahabubnagar District, Telangana, benefits from logistical efficiency and operational support.
  3. Products are marketed under the "Jindal Star" brand for Jindal Pipes Limited, adhering to international manufacturing standards.
  4. The company's facility holds certifications such as ISO 9001:2015 and IS standards from the Bureau of Indian Standards, ensuring quality production.

 

Weaknesses

  1. The company, its promoters/director, and group companies are involved in legal proceedings, and any adverse decisions could have a significant impact on business, operations, and financial condition.
  2. Long-term agreements with Jindal Pipes Limited for product procurement are in place, with a renewed agreement effective April 01, 2023. Marketing under the "Jindal Star" brand, any disruptions in this agreement could affect the company's revenue and financial results.
  3. As of March 31, 2023, the company has certain contingent liabilities amounting to Rs. 4.04 crore. If materialized, these liabilities could impact its financial condition and business.

 

Opportunities

  1. The company has partnered with Jindal Pipes Limited to create an extensive network aimed at identifying key customers and executing efficient marketing strategies.
  2. Its robust distribution network and marketing system ensure product availability, enabling an efficient supply chain, attentive customer service, and timely product delivery.
  3. As of March 31, 2023, the company has exported its products to approximately 10 countries worldwide.

 

Threats

  1. The company has borrowed an unsecured loan of Rs. 3.83 crore, repayable on demand. Any demand for repayment from lenders may impact the company's cash flow and financial condition.
  2. The cost of material consumed represents a significant portion of the company's revenue, contributing 95.58%, 91.85%, and 81.59% in fiscal years 2023, 2022, and 2021, respectively, based on restated figures. Any disruption in the supply of raw materials or an increase in material prices, fuel costs, labor, or other inputs could adversely affect the company's profitability and results of operations.

 

Vibhor Steel Tubes IPO Noteworthy Highlights

The remaining proceeds from the Issue after deducting issue-related expenses (Net Proceeds) will be allocated as follows:

  • Financing the company's working capital needs.
  • Covering general corporate expenses.
  • Vibhor Steel Tubes IPO is a book-built issue of Rs 72.17 crores. The issue is entirely a fresh issue.



How to apply for Vibhor Steel Tubes Ltd. IPO?

You can apply for the Vibhor Steel Tubes Ltd. IPO in these ways:

UPI
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Demat Account

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Vibhor Steel Tubes Ltd. IPO FAQs

What are the opening and closing dates for Vibhor Steel Tubes IPO?

Vibhor Steel Tubes IPO will open for subscription on February 13 and close on February 15.

What is the price band for Vibhor Steel Tubes IPO?

The price band for Vibhor Steel Tubes IPO is ₹141 to ₹151 per share.

Who is taking part in the OFS?

Vibhor Steel Tubes IPO is a book built issue of Rs 72.17 crores. The issue is entirely a fresh issue. Hence, there is no OFS component. 

What is the minimum and maximum lot size for the Vibhor Steel Tubes IPO?

For the IPO application, the minimum lot size is 99 shares. Retail investors are required to invest a minimum amount of ₹14,949.

Who are Vibhor Steel Tubes IPO Lead Managers?

Khambatta Securities Ltd is the sole Book Running Lead Manager (BRLM) to the issue.

Who is the registrar of the issue?

KFin Technologies Limited is the registrar for Vibhor Steel Tubes IPO.

When will the Vibhor Steel Tubes IPO allotment take place?

The finalisation of the basis of allotment for Vibhor Steel Tubes IPO will be done on February 16 2024, and the allotted shares will be credited to investors’ demat accounts by February 19.

When and where will the Vibhor Steel Tubes shares be listed?

The equity shares of Vibhor Steel Tubes are proposed to be listed on February 20 ,2024, on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

 

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