Vibhor Steel Tubes IPO - Review & Fundamental Analysis

Vibhor Steel Tubes IPO

Vibhor Steel Tubes IPO consists of a fresh issue of shares worth INR 7,216.96 lakhs. The company plans to utilize it to meet the working capital requirements and general corporate purposes.

Vibhor Steel Tubes Ltd IPO – Important Details 

Vibhor Steel Tubes IPO DateFebruary 13, 2024 to February 15, 2024
Vibhor Steel Tubes IPO Listing DateFebruary 20, 2024
Vibhor Steel Tubes IPO PriceINR 141-151 per share
Vibhor Steel Tubes IPO Lot Size99 Shares
Vibhor Steel Tubes IPO Total Issue SizeINR 7,216.96 lakhs
Vibhor Steel Tubes IPO Basis of AllotmentFebruary 16, 2024
Vibhor Steel Tubes IPO Initiation of RefundsFebruary 19, 2024
Vibhor Steel Tubes IPO Credit of Shares to DematFebruary 19, 2024
Vibhor Steel Tubes IPO Issue TypeBook Built Issue IPO
Vibhor Steel Tubes IPO Listing AtBSE NSE

Vibhor Steel Tubes Limited IPO – Company Profile 

Vibhor Steel Tubes Ltd. produces Mild Steel/Carbon Steel ERW Black and Galvanized Pipes, Hollow Steel Pipes, and Cold Rolled Steel Strips/Coils, catering to heavy engineering industries in India and offering diverse steel products. 

With direct links to Jindal pipe dealers and international markets, backed by diversified product lines and experienced management, Vibhor Steel’s “Vibhor” brand is expanding globally with a focus on customer feedback and marketing efforts. 

Their 630-member in-house quality team, overseen by their board of directors, conducts rigorous testing of raw materials and finished products across multiple locations, ensuring compliance with international standards.

Vibhor Steel Tubes Limited IPO – Fundamental Analysis 

Vibhor Steel Tubes Ltd’s IPO financials display remarkable revenue and profitability growth, with a significant asset increase. Despite a high leverage ratio, the company’s strong performance suggests a potentially lucrative investment in the burgeoning steel industry.

Revenue Growth:

The company has seen remarkable revenue growth, from ₹51,046.68 lakhs in 2021 to ₹1,11,311.90 lakhs in 2023. This indicates a strong market demand for its products and an expanding business scale.

Equity Growth:

Equity has increased from ₹6,048.99 lakhs in 2021 to ₹9,319.79 lakhs in 2023, reflecting investor confidence and possibly successful capital infusion to support growth.

Profitability:

Profit after tax has increased exponentially from ₹68.83 lakhs in 2021 to ₹2,106.62 lakhs in 2023, demonstrating the company’s ability to scale operations profitably.

Return on Net Worth (RoNW):

The RoNW has significantly improved, indicating the company’s increasing efficiency in generating profit from shareholders’ equity, moving from 1.14% in 2021 to 22.60% in 2023.

Diluted EPS:

The Diluted EPS has dramatically increased, showcasing the company’s growing profitability per share, from ₹0.49 in 2021 to ₹14.85 in 2023.

Asset and Liability Management:

Total assets have grown, indicating business expansion. However, the company’s liabilities have also increased, suggesting reliance on debt financing. The debt-equity ratio remains high, signaling a leveraged financial structure.

Liquidity and Inventory Turnover:

The current ratio has slightly improved, indicating a stable liquidity position. The inventory turnover ratio shows efficient inventory management, slightly fluctuating in the recent year.

Vibhor Steel Tubes Ltd IPO Financial Information 

ParticularAs at 31 March 2021As at 31 March 2022As at 31 March 2023
Revenue (₹ in lakhs)51,046.6881,799.601,11,311.90
Equity (₹ in lakhs)6,048.997,197.299,319.79
Expenses (₹ in lakhs)50,734.9780,311.851,08,615.46
Profit and Loss After Tax (₹ in lakhs)68.831,133.112,106.62
RoNW (%)1.1415.7422.60
Diluted EPS only (₹)0.497.9914.85
Total Assets (in lakhs)17,293.3724,853.5629,363.00
Total Liabilities (in lakhs)11,244.3717,656.2717,656.27
NAV (in lakhs)42.6450.7465.71
Debt Equity Ratio1.231.771.63
Current Ratio1.171.231.25
Inventory Turnover Ratio8.0810.619.49

Vibhor Steel Tubes Limited IPO Peer Comparison 

Vibhor Steel Tubes Limited showcases a high RoNW of 22.60% with an EPS of ₹14.85, indicating strong profitability and efficiency compared to peers like APL Apollo, Hi-Tech Pipes, Goodluck India, and Rama Steel, underscoring its competitive position in the steel industry.

CompanyTotal Income (₹ in lakhs)Face Value per Equity Share (₹)P/EEPS (Basic) (₹)EPS (Diluted) (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Vibhor Steel TubesLimited1,11,437.8210NA14.8514.8522.6065.71
APLApolloTubesLimited16,21,313.00264.8823.1523.1421.36108.37
Hi-Tech Pipes Limited2,38,810.94147.913.062.189.0132.71
Goodluck India Limited3,08,680.16231.0133.3133.3114.16227.47
RamaSteelTubesLimited1,33,675.42137.751.221.1610.975.73

Vibhor Steel Tubes Ltd IPO Objective 

The main objective of Vibhor Steel Tubes is to fund working capital requirements. 

  1. Funding working capital requirements of the company: The company proposes to utilize INR 6,200 lakhs of the Net Proceeds for their estimated working capital requirements. The INR 6,200 lakhs will be used during Fiscal 2024. 
  1. General corporate purpose: The company intends to deploy the balance funds towards the general corporate goals, including funding growth opportunities i.e. meeting ongoing general corporate contingencies, capital expenditure in the ordinary course of business, and business development initiatives. 

Vibhor Steel Tubes IPO Risks And Challenges 

Vibhor Steel Tubes’ risks include dependency on Jindal’s success and reputation, potential insolvency, market fluctuations, and regulatory changes. Legal proceedings pose further threats, with adverse decisions impacting business stability and financial condition. 

  • The renewed agreement with Jindal Pipes Limited ensures a fixed selling price, a minimum of 100,000 MT orders annually, and compensations for shortfalls. 2% turnover discount provided. The deal spans six years; disruption affects revenue, and discounts reduce profitability. 
  • Long-term agreement with Jindal Pipes Limited for manufacturing “Jindal Star” products. Dependency on Jindal’s success and reputation poses risks, including insolvency, market fluctuations, and regulatory changes, impacting profitability. 
  • Legal proceedings involving companies, promoters, directors, and group companies pose risks. Adverse decisions could materially impact business, operations, and financial conditions, highlighting vulnerability to legal outcomes.

Vibhor Steel Tubes IPO – Industry & Market Potential 

Global steel production capacity reached 2,452.7 million tonnes in CY22, with Asia holding a 60% share. China dominates in capacity, production, and consumption, followed by India and Japan, while other regions also contribute significantly. 

Steel consumption rose across industries like energy, construction, automotive, and transportation post-pandemic. Developed economies, driven by automotive and durable goods sectors, saw increased demand. Global finished steel consumption grew at a CAGR of nearly 1%. 

India, the second-largest steel producer and consumer, relies on domestic resources and growth labor. Driven by construction, real estate, and automotive sectors, with low per capita consumption but potential growth projected in the National Steel Policy 2017.

Vibhor Steel Tubes Limited IPO – Type of Offer 

Vibhor Steel Tubes will have a fresh issue of shares worth INR 7,216.96 lakhs. The company plans to utilize it to meet the working capital requirements and general corporate purposes.

Vibhor Steel Tubes Ltd IPO Offer Size 

The offer size of Vibhor Steel Tubes is INR 7,216.96 lakhs. The company plans to utilize it to meet the working capital requirements and general corporate purposes. 

Vibhor Steel Tubes Limited IPO Allotment Structure 

Vibhor Steel Tubes’s IPO allocation designates 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs) in line with SEBI regulations. A portion of the issue is also set aside for the eligible employees.

  • Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies. 
  • Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
  • Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 
  • Eligible Employees: A portion of the issue is reserved for eligible employees.

How to apply for a Vibhor Steel Tubes IPO?

To apply for the Vibhor Steel Tubes through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t already have one, you need to open a Demat and trading account with Alice Blue.
  2. Check for IPO Details: Once your account is active, you can check for the Vibhor Steel Tubes IPO details in the IPO section of the Alice Blue platform.
  3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  4. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Vibhor Steel Tubes IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to check Vibhor Steel Tubes IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1.  Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

2.  Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.

3.  Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.

4. Select the Vibhor Steel Tubes IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Vibhor Steel Tubes IPO.

5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Vibhor Steel Tubes IPO:

Registrar’s Website: Visit the website of KFin Technologies Limited, the Vibhor Steel Tubes IPO registrar. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

NSE and BSE: You can also check the allotment status on the National Stock Exchange’s (NSE) and Bombay Stock Exchange’s (BSE) official websites. You would need your application number and PAN to check the status.

Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

Vibhor Steel Tubes IPO Offer Registrar

The registrar for the Vibhor Steel Tubes IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

KFin Technologies Limited

Selenium  Tower  B,  Plot  31-32,  Financial  District,

Nanakramguda,  Gachibowli,  Hyderabad – 500  032,

India

Tel: +91 40 6716 2222

Email: [email protected]

Website: www.kfintech.com

Vibhor Steel Tubes IPO FAQs

1. What is the allotment date of the Vibhor Steel Tubes’s IPO?

The allotment date of Vibhor Steel Tubes’s IPO is February 16, 2024.

2. What is the price band of Vibhor Steel Tubes’s IPO?

The price band of the issue is INR 141-151 per share.

3. What is the size of Vibhor Steel Tubes’s IPO?

Vibhor Steel Tubes’s IPO consists of a fresh issue of shares worth INR 7,216.96 lakhs. The company plans to utilize it to meet the working capital requirements and general corporate purposes. 

4. What is the listing date of Vibhor Steel Tubes’s IPO?

The listing date of the Vibhor Steel Tubes’s IPO is  February 20, 2024. 

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