The net proceeds from the issuance of 47,79,444 Equity Shares (worth Rs 72 crs) will be utilized to fund the working capital requirements of the company.
About Vibhor Steel Tubes Ltd IPO
Vibhor Steel Tubes is a manufacturer and exporter of mild steel/carbon steel ERW Pipes, hot-dipped galvanized pipes, hallow section and painted pipes, and crash barriers. The company is a two decades old manufacturer of steel pipes to various heavy engineering industries in India. Vibhor is in business with Jindal Pipes since 2003, and it manufactures and supplies its finished goods for Jindal Pipes under the brand name “Jindal Star”. Company has a long term agreement with Jindal pipes under which Jindal will provide orders with a minimum quantity of 1,00,000 MT per annum over the next 6 years that will ensure majority capacity utilization in Vibhor’s two manufacturing facilities, Unit 1 and Unit
Vibhor Steel Tubes Ltd IPO Financials
Particulars (in Cr)
H1FY24
FY23
FY22
FY21
Total Revenue Annual
531
1113
818
510
Operating Expenses Annual
508
1068
788
492
Operating Profit Annual
23
46
30
19
Depreciation
4
6
6
7
Interest Annual
9
12
9
9
Tax Annual
3
7
4
3
Net Profit Annual
9
21
11
1
Total Share Holder Funds
102
93
72
60
Fixed Asset Annual
63
54
50
52
Total Non Current Asset
13
8
2
1
Total Current Asset
301
231
197
120
Total Asset Annual
376
294
249
173
Book Value Per Share
₹ 71.7
₹ 65.7
₹ 50.7
₹ 42.6
ROE
8.4%
25.5%
17.1%
1.1%
ROCE
7.0%
16.5%
12.1%
9.9%
Total Debt To Total Equity
1.8
1.6
1.8
1.2
EBIDTA
4.3%
4.1%
3.6%
3.7%
Cash From Operating
-8
7
-35
45
Cash From Investing
-16
-16
-4
-1
Cash From Finance
26
13
44
-36
Net Cash Flow
1
5
6
8
Promoter's Holding
Total Share Capital
-
Offered to Public
-
Promoter’s Holding(Pre-Issue)
98.24%
Promoter’s Holding(Post-Issue)
-
Vibhor Steel Tubes’s Strengths
1. In-house designing, engineering and execution team
2. Strong execution capabilities with industry experience and established track record
3. Specialized production of Mild-steel Pipes and Tubes
4. Strategic Location of manufacturing Units.
Vibhor Steel Tubes’s Weaknesses
The following points should be kept in mind:
Vibhor Steel Tubes, like any business, has its strengths and challenges. The business is dependent on one customer heavily i.e., Jindal Pipes Ltd. Jindal Pipe’s accounted for ~92% of Vibhor’s revenue in FY23. The business runs on very low single-digit margins hovering around ~3.5-4.5%, making it susceptible to losses in case of escalation of fixed cost. The business is working capital-intensive and has reported negative cash flows from operating activities, which could impact on its growth and profitability.
Frequently asked questions
Vibhor Steel Tubes IPO is a main-board IPO equity shares of the face value of ₹10 aggregating up to ₹72.17 Crores. The issue is priced at ₹141 to ₹151 per share. The minimum order quantity is 99 Shares.
The IPO opens on February 13, 2024, and closes on February 15, 2024.
Kfin Technologies Limited is the registrar for the IPO. The shares are proposed to be listed on BSE and NSE.
The Vibhor Steel Tubes IPO opens on February 13, 2024, and closes on February 15, 2024.
Vibhor Steel Tubes IPO lot size is 99 Shares, and the minimum amount required is ₹14,949.
The Vibhor Steel Tubes IPO listing date has not yet been announced. The tentative date of Vibhor Steel Tubes IPO listing is Tuesday, February 20, 2024.
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