Vibhor Steel Tubes Ltd IPO
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Know Vibhor Steel Tubes Ltd IPO
Overview of Vibhor Steel Tubes Ltd IPO
IPO Date
13-Feb-2024 to 15-Feb-2024
Face Value
₹10 per
Price Band
₹141 to ₹151
Lot Size
99 Share
Issue Size
47,79,444 shares (aggregating up to ₹72.17 Cr)
Listing At
BSE,NSE
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
Cut off time for UPI Mandate
15-Feb-2024
Objective of Vibhor Steel Tubes Ltd IPO
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)
-
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.
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.
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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