Vibhor Steel Tubes IPO: From financials to key risks, here are 10 things to know from RHP before investing

Vibhor Steel Tubes IPO: Vibhor Steel Tubes Ltd, the manufacturer of steel pipes and tubes, saw its initial public offering (IPO) open for subscription on February 13. 

Here are 10 things to know from the RHP

1.Vibhor Steel Tubes IPO details-

The bidding for Vibhor Steel Tubes IPO opened on Tuesday, February 13, and will close on Thursday, February 15.

Vibhor Steel Tubes IPO allotment is likely to be finalized on February 16.  

Vibhor Steel Tubes IPO will list on BSE, NSE with tentative listing date fixed as on February 20.

Vibhor Steel Tubes IPO size is ₹72.17 crore. The issue is entirely a fresh issue of shares.

Vibhor Steel Tubes IPO Price Band  has been fixed at ₹141 to ₹151 per share.

Vibhor Steel Tubes IPO Lot size for application is 99 shares. The minimum investment amount required by retail investors is ₹14,949.

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Vibhor Steel Tubes IPO: Objectives of the issue

The company proposes to utilise the net proceeds from the issue to fund working capital requirements and general corporate purposes.

Vibhor Steel Tubes IPO: About the company

 Vibhor Steel Tubes Ltd is a manufacturer and exporter of Mild Steel  Carbon Steel ERW Black and Galvanized Pipes, Hallow Steel Pipe, Cold rolled Steel (CR) Strips/ Coils. It is a 2 decades old manufacturer, exporter and supplier of steel pipes and tubes to various heavy engineering industries in India.

Vibhor Steel Tubes IPO: Key Product Verticals

ERW (“Electric Resistance Welded”) Pipes – The Electric Resistance Welded Pipes are manufactured from high-quality continuous cast, fully killed, control-rolled, low-carbon steel coils which are procured from trusted vendors.

Hot -Dipped Galvanized Pipes – Corrosion resistant pipes, i.e. Galvanized Pipes are manufactured at the plant in large quantities, using high-end Zinc to coat. Having a cover of protective zinc, these pipes have maximum resistance to corrosion, increasing their life expectancy.

Hollow Sections Tubes – ERW Pipes are also manufactured in Hollow sections shapes i.e. square and rectangular

Crash Barrier – Crash Barrier are manufactured through GI Mild Steel.

Vibhor Steel Tube IPO: Peer group companies

Vibhor Steel Tube  peer group companies include APL Apollo Tubes Limited, Hi-Tech Pipes Limited, Goodluck India Limited,  Rama Steel Tubes Limited

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Vibhor Steel Tubes IPO: Financials 

Vibhor Steel Tubes topline and bottomline has seen a decent growth over the past. Its revenue increased to ₹1,114.38 crore in FY23 from ₹818.48 crore in FY22. Revenue for the period ended September 2023 was at ₹531.24 crore.

Net profit of the company in FY23 rose to ₹21.07 crore from ₹11.33 crore in FY22. Bottomline for the period April-September 2023 was at ₹8.52 crore.

Vibhor Steel Tubes IPO: Promoters

VSTL is promoted by  Vijay Kaushik and Vibhor Kaushik. Vijay Kaushik, is currently designated as Chairman and Director while Vibhor Kaushik is currently designated as Managing Director

Vibhor Steel Tubes IPO: Registrar, Book running manager

Khambatta Securities Ltd is the book running lead manager of the Vibhor Steel Tubes IPO.  Kfin Technologies Ltd is the Vibhor Steel Tubes IPO registrar.

Vibhor Steel Tubes IPO: Key Risks

Vibhor Steel Tube is dependent on, and derive a substantial portion of our revenue from, a single customer, Jindal Pipes Limited and over 90% of our revenue is derived from our single customer. Cancellation by Jindal Pipes Limited or delay or reduction in their orders could have a material adverse effect on our business, results of operations and financial condition.

Vibhor Steel Tube Promoters/Director and our Group Companies are parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on our business, results of operations and financial condition

Vibhor Steel Tubes IPO: Grey market premium (GMP)

Vibhor Steel Tubes IPO GMP or grey market premium today, stood at ₹120  per share as per Investorgain.com. This indicates that Vibhor Steel Tubes shares are trading at a premium of 79.47% to the issue price of ₹151, in the grey market and also that the  street is expecting listing of shares happening at ₹271 apiece.