Vibhor Steel Tubes Limited

About the company

## **About  Vibhor Steel Tubes Limited** Incorporated in 2003, Vibhor Steel Tubes Limited is a manufacturer, exporter and supplier of steel pipes and tubes used by various industrial heavy engineering industries in India. Its product portfolio includes ERW (Electrical Resistance Welding) pipes, hot-dipped galvanized pipes, hollow section and painted pipes, and crash barriers. These pipes are used in frames and shafts, bicycle frames, furniture, shockers, structural purposes, engineering purposes and more. It has an agreement with Jindal Pipes Limited, through which it receives orders directly from  customers. However, the quality is checked by the customer and the brand name Jindal Star. While the products are directly delivered to the customer, the company invoices Jindal so that it becomes its main customer and debtor. Even though it's a long-term agreement, it's not exclusive and the company can still sell its products in the open market. As of Q2 FY24, some of its customers include Jindal Pipes, BLA Udyog, Mick D.O.O, Sudferrum GMBH & CO.KG, G.B.M Building Equipments SRL, and Om Sairam Steels and Alloys. Its raw materials include HR Coils and Zinc, which it procures from the Steel Authority of India, JSW Steel, Hindustan Zinc Limited and others. Between FY21 and FY23, it saw a CAGR rise of 29% in its revenue from operations and 212% in its profit. Moreover, the steel tubes and pipes industry has observed a growth rate of ~18% between April 2023 and August 2023, and the momentum is expected to continue, backed by rising demand from key end-user industries. All of this could benefit the company.  And now, Vibhor Steel Tubes Limited is coming out with its initial public offer (IPO). The IPO will be a fresh issue and the money raised will be utilised for funding working capital requirements and general corporate purposes. Its shares will be listed on the NSE and the BSE.    Here are key details about the Vibhor Steel Tubes Limited IPO: Company Name| **Vibhor Steel Tubes Limited**|  | Company Type| **Private** ---|---|---|---|--- Company Established On|**2003**| ### **Financial snapshot** Particulars| FY21| FY22| FY23| Q2FY24 ---|---|---|---|--- Revenue|₹ 510 crore|₹ 817 crore|₹ 1,113 crore|₹ 530 crore Net Profit|₹ 0.6 crore|₹ 11.3 crore|₹ 21 crore|₹ 8.5 crore ## **Here’s a quick look at Vibhor Steel Tubes Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)** ### **Strengths and opportunities** 1. Benefits from a long-standing relationship with Jindal Pipes Limited. 1. The strategic location of manufacturing units with unit 1 located in Raigad, Maharashtra and used 100% for export, and unit 2 located in Mahabubnagar, Telangana, close to the Jadcherla industrial area.  1. International accreditations such as ISO 9001:2015 for manufacturing and supply of ERW Steel Pipes-Black & Galvanized, and IS 1239:2004, IS 3601:2006, and IS 3589:2001 from the Bureau of Indian Standards.  1. Exports some of its manufactured goods to overseas customers under the brand name Jindal, accounting for 3% of its total revenue from operations as of 30 September 2023.  1. Well-developed distribution and marketing network with exports to around ten countries across the globe as of 30 September 2023.  1. The company has integrated manufacturing facilities. 1. Stable financials with EBITDA margins of 3%, 3%, 4% and 4% as of FY21, FY22, FY23 and Q2 FY24. ### **Risks and threats** 1. Significantly dependent on revenue from the agreement with Jindal Pipes as it accounted for 92% and 88% of the total revenue from operations in FY23 and as of 30 September 2023.  1. Has consistently experienced negative cash flows from investing activities in FY21, FY22, FY23 and Q2 FY24.  1. Operates a capital-intensive business with capital requirement estimations of ₹209 crore and ₹274 crore in FY24 and FY25, respectively.  1. Business is largely concentrated in the states of Maharashtra and Telangana.  1. Subject to risk as pricing in the steel industry is subject to market demand, volatility and economic conditions.  1. Faces competition from APL Apollo Tubes, Hi-Tech Pipes, Rama Steel Tubes, and Goodluck India. ## **Vibhor Steel Tubes Limited IPO details** ### **** **Vibhor Steel Tubes Limited IPO date** According to the offer document filed by the company with the SEBI, the Vibhor Steel Tubes IPO’s opening date – in other words, the Vibhor Steel Tubes IPO launch date – will be 13th February 2024. The Vibhor Steel Tubes IPO closing date is 15th February 2024. After this, investors will be updated about the allotment status on 16th February 2024. Investors, who have been allotted shares, can expect them to be credited to their demat account on 19th February 2024. The Vibhor Steel Tubes IPO listing date is 20th February 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. ### **** **Vibhor Steel Tubes Limited** **IPO Price Band** The IPO is a fresh issue. The Vibhor Steel Tubes IPO price band has been set between ₹141 and ₹151 per share. Interested investors can choose a price within this band to apply for the IPO. The Vibhor Steel Tubes IPO listing price will be determined on 20th February 2024. The listing price is the price at which a company’s shares debut on the stock exchanges. **** **Vibhor Steel Tubes Limited IPO Lot size** The Vibhor Steel Tubes IPO details have been declared. The Vibhor Steel Tubes IPO lot size is set at 99 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Vibhor Steel Tubes IPO issue size is approx ₹72 crore. ## **How to pre-apply for the Vibhor Steel Tubes Limited** **IPO?** You can pre-apply for the Vibhor Steel Tubes Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. Follow these steps to pre-apply for the IPO: 1. Login to your Upstox account, using your six-digit PIN 1. After successfully logging in, click on ‘Discover’ 1. On the Discover tab, you will find the ‘Invest in IPO’ section 1. Under the Invest in IPO section, look for the ‘Vibhor Steel Tubes Limited IPO’ tab and click on it 1. Now fill in all the required information, like ‘bid price’ and ‘lot size’ 1. Confirm and click on ‘Pre-Apply’ 1. Accept the mandate on your UPI app ## **How to apply for the Vibhor Steel Tubes Limited** **IPO?** If you are interested in this investment opportunity but unsure how to apply for the Vibhor Steel Tubes Limited IPO, here we are listing out the steps for you. When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Vibhor Steel Tubes Limited IPO on Upstox: 1. Login to your Upstox account, using your six-digit PIN 1. After successfully logging in, click on ‘Discover’ 1. On the Discover tab, you will find the ‘Invest in IPO’ section 1. Under the Invest in IPO section, look for the ‘Vibhor Steel Tubes Limited IPO’ tab and click on it 1. Now fill in all the required information, like ‘bid price’ and ‘lot size’ 1. Confirm and click on ‘Apply’ 1. Accept the mandate on your UPI app ## **How to check the Vibhor Steel Tubes Limited** **IPO** **allotment status?** When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. Here’s a step-by-step guide on how to check the Vibhor Steel Tubes Limited IPO allotment status: 1. Login to your Upstox account, using your six-digit PIN 1. After successfully logging in, click on ‘Discover’ 1. On the Discover page, you will find the ‘Invest in IPO’ section 1. Under the Invest in IPO section, you will find the ‘View all’ option 1. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab 1. In the ‘IPO’ tab, click on ‘My applications’  1. In ‘My applications’, under the History section, your Vibhor Steel Tubes Limited IPO allotment status will be mentioned Check Allotment Status ## **Open a demat account with Upstox to apply for the Vibhor Steel Tubes Limited** **IPO** To apply for the Vibhor Steel Tubes Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app. Here is a step-by-step guide on how to open a demat account with Upstox: 1. Click [ **here**](https://upstox.com/open-demat-account/\OpenOpen?landing_page=learning-center/demat-account/demat-account-opening-procedure) to visit the demat account opening page on the Upstox website.  1. Enter your phone number and other essential details to begin opening a demat account. 1. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  1. Complete the e-verification using the OTP sent to your registered mobile number. This is all it takes to open a demat account with Upstox. Easy and quick, right? [Open Demat Account](https://upstox.com/open-demat-account/\Open\Open) ## **Upstox – trading app to apply for the Vibhor Steel Tubes Limited IPO** Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. You can apply for the Vibhor Steel Tubes Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.

Financial performance (₹ Cr)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   13 Feb 2024

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   15 Feb 2024

   Last day to place your bid

3. Basis of Allotment

   Completed
   15 Feb 2024

   Share allotment finalised

4. Refund Initiation

   Completed
   19 Feb 2024

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   16 Feb 2024

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   20 Feb 2024

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.