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Vibhor Steel Tubes IPO
Vibhor Steel Tubes Limited
₹13,959 /99 sharesMinimum investment
IPO details
Minimum investment
₹13,959
Price range
₹141 - ₹151
Lot size
99
Issue size
72.17 Cr
Face value
10
IPO document
Subscription rate
Qualified Institutional Buyers178.73x
Non-Institutional Investor721.32x
Retail Individual Investor188.09x
Employees201.37x
Total298.81x
Schedule
13 Feb 2024
IPO open date
15 Feb 2024
IPO close date
16 Feb 2024
Allotment date
16 Feb 2024
Funds unblock or debit
20 Feb 2024
Tentative listing date
About
Founded in
2003
MD/CEO
Mr. Vijay Kaushik
Parent organisation
Vibhor Steel Tubes Limited
Vibhor Steel Tubes Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
The company enjoys a long-standing relationship with its customer Jindal Pipes Limited (JPL). Over the years, it has progressed from offering job-work activity to full-time production of pipes for JPL.
The company’s manufacturing units are strategically located. Unit I in Raigad, Maharashtra, is the exclusive export centre, while Unit II near Hyderabad in Mahabubnagar District, Telangana, strategically leverages proximity for logistical efficiency and operational support.
It markets its products under the "Jindal Star" brand for Jindal Pipes Limited, adhering to international manufacturing standards. Their facility holds certifications like ISO 9001:2015 and IS standards from the Bureau of Indian Standards, enhancing their ability to produce quality ERW Steel Pipes for both domestic and international markets.
The company has collaborated with Jindal Pipes Limited to establish a comprehensive network for identifying core customers and implementing effective marketing strategies. Its well-developed distribution network and marketing system ensures product availability, facilitating an efficient supply chain, dedicated customer service, and prompt product delivery. As of March 31, 2023, the company has exported to around 10 countries globally.
Vibhor Steel Tubes has maintained consistent financial performance over the last few years. Its revenue from operations was Rs. 510.47 cr, Rs. 817.99 cr and Rs. 1,113.12 cr FY 2021, 22 and 23 respectively. The company’s Profit after Tax has also shown a consistent rise over these three years, being, Rs. 0.69 cr, Rs. 11.33 cr, and Rs. 210.66 cr in 2021, 2022 and 2023.
The company and its promoters/director and group companies are involved in legal proceedings, and any adverse decision could significantly impact business, operations, and financial condition.
The company has established long-term agreements with Jindal Pipes Limited for the procurement of its products. Operating under the renewed agreement effective April 01, 2023, and marketing under the "Jindal Star" brand, any disruptions in this agreement could impact the company's revenue and financial results accordingly.
The company has certain contingent liabilities amounting to Rs. 4.04 cr as of March 31, 2023. If materialized, these could affect its financial condition and business.
The company's working capital-intensive nature poses a risk of adverse effects on operations in case of insufficient cash flows. Its estimated working capital requirements for FY 2024 and 2025 are Rs. 226.23 cr and Rs. 288.12 cr respectively.
The company has borrowed an unsecured loan of Rs. 3.83 cr, repayable on demand. Any demand for repayment from lenders may impact the company's cash flow and financial condition.
The cost of material consumed constitutes 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. The company’s profitability and results of operations may be adversely affected in the event of any disruption in the supply of raw materials or an increase in the price of materials, fuel costs, labour or other inputs.
Application details
For Vibhor Steel Tubes IPO, eligible investors can apply as Regular & Employee.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Regular | ₹141 - ₹151 | Upto ₹2 Lakhs | 99 |
| Employee | ₹141 - ₹151 | Upto ₹2 Lakhs | 99 |
| High Networth Individual | ₹141 - ₹151 | ₹2 - ₹5 Lakhs | 99 |