Home IPO Key Details about Vibhor Steel Tubes Limited IPO, Financials GMP & More

Key Details about Vibhor Steel Tubes Limited IPO, Financials GMP & More

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Key Points for Vibhor Steel Tubes Ltd IPO:

👉The issue is entirely a fresh issue of 2.3 Crore shares amounting Rs 72.17 Crores

👉Currently it is working with Jindal Pipes Ltd. as preferred supplier.

👉Company has debt of 160.27 as on 30 Sept, 2023

👉Company has posted low PAT margins of 0.13% (FY21),1.39% (FY22) &1.89% (FY23).

Issue DateFeb 13 to 15, 2024
Issue SizeRs. 72.17 crore
Fresh IssueRs. 72.17 crore
Price BandRs. 141 to 151 per share
Lot Size99 Shares
Face Valueâ‚ą10 per share
Issue TypeBook Built Issue Type
Listing AtBSE, NSE
QIB shares offeredNot less than 50% of the net issue
Retail shares offeredNot more than 35% of the net issue
NII shares offeredNot more than 15% of the net issue

Lot Size (Minimum)

Retail99 sharesRs. 14,949
Small – HNI1,386 sharesRs. 2,09,286
Big – HNI6,633 sharesRs. 10,01,583

Tentative IPO Timelines

Basis of Allotment16 Feb, 2024
Initiation of Refunds19 Feb, 2024
Credit of shares to Demat19 Feb, 2024
Listing Date20 Feb, 2024

About the Company

Vibhor Steel Tubes Ltd. (VSTL) is manufacturers and exporters of Mild Steel/Carbon Steel ERW Black and Galvanized Pipes, Hallow Steel Pipe, Cold rolled Steel (CR) Strips/ Coils. It is 2 decades old manufacturer, exporter and supplier of steel pipes and tubes to various heavy engineering industries in India. Steel pipes and tubes can be used for many purposes such as steel pipes for frames and shafts, steel pipes for bicycle frames, steel pipes for furniture, CDW pipes for shockers, steel pipes for various structural purposes, steel pipes for various engineering purposes etc. 

It has a very wide range of steel pipes and tubes products. The lengths of the steel pipes & tubes in different ranges unless otherwise specified by the customers. VSTL manufactures steel pipes and tubes in various shapes and size such as square, round, rectangular and elliptical or any special shape.
The company is working with Jindal Pipes Limited since 2003. It manufactures & supplies the finished goods for “Jindal Pipes Limited” (“Jindal”) vide the renewed agreement dated April 01, 2023 under the brand name “Jindal Star”. It has a long-term agreement for the six (6) years with the Jindal. Under the agreement Jindal will provide orders with a minimum quantity of 1,00,000 MT per annum to fill majority capacity of Unit I & Unit II of the Company. Though the company has a long-term agreement but not the exclusive agreement, as per the agreement there are no restrictions on the Company that they cannot sell their products in open market without the brand name of Jindal Star.

It has a big opportunity as a manufactures of steel Pipes & Tubes products in the domestic market as well as in export market. There is huge demand in the market so if the agreement will get disrupt, the company will not face any problem in maintaining its production volume. It has 630 employees on its payroll as of the date of filing this prospectus.

Objects of the Issue

1. Funding of working capital requirements of the company; and

2. General corporate purposes.

Vibhor Steel Tubes IPO Promoter Holding

The Promoter of the company is:                                                                          

  1. Mr. Vijay Kaushik,
  2. Mr. Vibhor Kaushik,
  3. Mrs. Vijay Laxmi Kaushik
  4. M/s. Vijay Kaushik HUF
Pre-Issue shareholding98.24%
Post issue shareholdingNA

Financial Summary                                                                                                         Amount in Rs. crores

ParticularsMarch 2023March 2022March 2021
Revenue1114.38818.48511.51
Net Profit / (Loss)21.0711.330.69
Total Assets293.63248.54172.93
Total Borrowings126.83106.0758.74

GMP / Expected Premium

GMP as on 13-02-2024 is 73%

Please note GMP is taken from internet and is subject to change in future. Please consult your financial advisor before applying in the IPO.

Conclusion: One may apply for decent listing gains.

Disclaimer: The information above is only for information and educational purpose. Please consult your Financial advisor before applying in the IPO.

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