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06 May 2024

Vibhor Steel Tubes Limited IPO

Vibhor Steel Tubes Limited is the leading manufacturer for high-quality steel products in India, with an aim to make a mark on the global scale. They deal with high-end mild steel tubes and pipes, ranging from galvanized pipes to welded black tubes/pipes which find application in the domestic, agriculture and the industrial sector etc. A state-of-the-art manufacturing facility is located at Raigarh in the state of Maharashtra, India, which currently produces high-end Hollow Section, GI and Black pipes, ranging from sizes 1/2” to 8”. Alongwith the newly expanded and modernized 8” pipe manufacturing unit, they have successfully elevated their production capacity to 60,000 MT per annum.

Strict adherence to the specifications of Indian and International standards makes their products rank high on quality meters. Vibhor Steel Tubes IPO is a book-built issue of Rs 72.17 crores. The issue is entirely a fresh issue of 0.48 crore shares. Vibhor Steel Tubes IPO price band is set at ₹141 to ₹151 per share. The minimum lot size for an application is 99 Shares. Khambatta Securities Limited is the book running lead manager of the Vibhor Steel Tubes IPO, while Kfin Technologies Limited is the registrar for the issue

Vibhor Steel Tubes IPO Overview

Detail	Description
IPO Date	February 13, 2024 to February 15, 2024
Listing Date	February 20, 2024
Face Value	₹10 per share
Price Band	₹141 to ₹151 per share
Lot Size	99 Shares
Total Issue Size	4,779,444 shares (aggregating up to ₹72.17 Cr)
Fresh Issue	4,779,444 shares (aggregating up to ₹72.17 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Share holding pre issue	14,183,000
Share holding post issue	18,962,444

Vibhor Steel Tubes IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Tuesday, February 13, 2024
IPO Close Date	Thursday, February 15, 2024
Basis of Allotment	Friday, February 16, 2024
Initiation of Refunds	Monday, February 19, 2024
Credit of Shares to Demat	Monday, February 19, 2024
Listing Date	Tuesday, February 20, 2024
Cut-off time for UPI mandate confirmation	5 PM on February 15, 2024

Vibhor Steel Tubes IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	99	₹14,949
Retail (Max)	13	1287	₹194,337
S-HNI (Min)	14	1,386	₹209,286
S-HNI (Max)	66	6,534	₹986,634
B-HNI (Min)	67	6,633	₹1,001,583

Vibhor Steel Tubes IPO Reservation

Investor Category	Shares Offered	Maximum Allottees
Anchor Investor Shares Offered	1,424,907 (29.81%)	NA
QIB Shares Offered	950,064 (19.88%)	NA
NII (HNI) Shares Offered	712,491 (14.91%)
bNII > ₹10L	474,995 (9.94%)	342
sNII < ₹10L	237,497 (4.97%)	171
Retail Shares Offered	1,662,479 (34.78%)	16,792
Employee Shares Offered	29,502 (0.62%)	NA
Total Shares Offered	4,779,444 (100%)

Vibhor Steel Tubes IPO Promoter Holding

Share Holding Pre Issue	98.24%
Share Holding Post Issue

Vibhor Steel Tubes IPO Anchor Investors Details

Bid Date	February 12, 2024
Shares Offered	1,424,907
Anchor Portion Size (In Cr.)	21.52
Anchor lock-in period end date for 50% shares (30 Days)	March 17, 2024
Anchor lock-in period end date for remaining shares (90 Days)	May 16, 2024

Company & Financials

Founded in 2003, Vibhor Steel Tubes Limited manufactures, exports and supplies steel pipes and tubes to various heavy engineering industries in India.
The company's product portfolio includes:

● ERW pipes for application in water transport, oil, gas and other non-toxic supplies.
● Hot-dipped galvanized pipes for application in agriculture and infrastructure.
● Hollow section pipes in square and rectangular forms.
● Primer painted pipes
● Crash barriers for application in railways, highways, and roads.

The company has two manufacturing facilities in Raigad, Maharashtra and Mahabubnagar (Dist.), Telangana and a warehouse in Hisar, Haryana.

Vibhor Steel Tubes Limited Financial Information

Period Ended	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	376.48	293.63	248.54	172.93
Revenue	531.24	1,114.38	818.48	511.51
Profit After Tax	8.52	21.07	11.33	0.69
Net Worth	101.76	93.20	71.97	60.49
Total Borrowing	160.27	126.83	106.07	58.74
Amount in ₹ Crore

Key Performance Indicator

KPI	Values
ROE	25.51%
ROCE	16.48%
Debt/Equity	1.63
RoNW	22.60%
P/BV	2.3

	Pre IPO	Post IPO
EPS (Rs)	14.85	8.99
P/E (x)	10.17	16.8

Objectives of Vibhor Steel Tubes IPO

The net proceeds of the Issue less the issue-related expenses (Net Proceeds) are proposed to be utilized in the following manner:

1. Funding of working capital requirements of the company; and
2. General corporate purposes.

Vibhor Steel Tubes IPO Review

The company is primary supplier of tubes and pipes to Jindal Pipes Ltd. and has a long term contract of around 6 years as of now. As claimed by the management, this contract is not exclusive and the company has liberty to sell products in the open markets. The company has posted growth in its top and bottom lines for the reported periods. Based on FY24 annualized earnings, the issue appears fully priced. Well-informed investors may park funds for the medium term.

FAQs for Vibhor Steel Tubes IPO

What Is the Size of Vibhor Steel Tubes’s IPO?

Vibhor Steel Tubes’s IPO consists of a fresh issue of shares worth INR 7,216.96 lakhs. The company plans to utilize it to meet the working capital requirements and general corporate purposes.
What Is the Price Band of Vibhor Steel Tubes’s IPO?

The price band of the issue is INR 141-151 per share.
When will Vibhor Steel Tubes Limited's IPO be allotted?

The Basis of Allotment will be on February 16, 2024.
When will Vibhor Steel Tubes Limited's IPO open for subscription?

The IPO subscription window will open on February 13, 2024, and will close on February 15, 2024.
What minimum lot size can retail investors subscribe to?

Retail investors can apply for a minimum of one lot, which is 99 shares.
When will Vibhor Steel Tubes Limited list on exchanges?

Vibhor Steel Tubes Limited IPO will be listed on BSE and NSE. The IPO will be listed on February 20, 2024.