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 Date | Feb 13 to 15, 2024 |
| Issue Size | Rs. 72.17 crore |
| Fresh Issue | Rs. 72.17 crore |
| Price Band | Rs. 141 to 151 per share |
| Lot Size | 99 Shares |
| Face Value | ₹10 per share |
| Issue Type | Book Built Issue Type |
| Listing At | BSE, NSE |
| QIB shares offered | Not less than 50% of the net issue |
| Retail shares offered | Not more than 35% of the net issue |
| NII shares offered | Not more than 15% of the net issue |
Lot Size (Minimum)
| Retail | 99 shares | Rs. 14,949 |
| Small – HNI | 1,386 shares | Rs. 2,09,286 |
| Big – HNI | 6,633 shares | Rs. 10,01,583 |
Tentative IPO Timelines
| Basis of Allotment | 16 Feb, 2024 |
| Initiation of Refunds | 19 Feb, 2024 |
| Credit of shares to Demat | 19 Feb, 2024 |
| Listing Date | 20 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:
- Mr. Vijay Kaushik,
- Mr. Vibhor Kaushik,
- Mrs. Vijay Laxmi Kaushik
- M/s. Vijay Kaushik HUF
| Pre-Issue shareholding | 98.24% |
| Post issue shareholding | NA |
Financial Summary Amount in Rs. crores
| Particulars | March 2023 | March 2022 | March 2021 |
| Revenue | 1114.38 | 818.48 | 511.51 |
| Net Profit / (Loss) | 21.07 | 11.33 | 0.69 |
| Total Assets | 293.63 | 248.54 | 172.93 |
| Total Borrowings | 126.83 | 106.07 | 58.74 |
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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