Vibhor Steel Tubes Limited is launching its IPO. The opens for subscription on 13th February and will close on 15th February 2024.
What does Vibhor Steel Tubes do?
Incorporated in 2003 as a Pvt. company, Vibhor Steel Tubes Limited is engaged in manufacturing and exporting Mild Steel/Carbon Steel ERW Black and Galvanized Pipes, Hallow Steel Pipe, Cold rolled Steel (CR) Strips/ Coils which are used in various heavy engineering industries.
The company has been working with Jindal Pipes Limited since 2003 where they manufacture & supply the finished goods for “Jindal Pipes Limited” (Jindal) as per the renewed agreement dated April 01, 2023, under the brand name “Jindal Star” which is 6 year long term agreement with Jindal where Jindal will provide orders with a minimum quantity of 1,00,000 MT per annum to fill the majority capacity of Unit I & Unit II of the Company.
What is the issue size of the Vibhor Steel Tubes IPO?
The entire 72.17 crore public offer of the company is a Fresh equity issue.
Financials of Vibhor Steel Tubes Limited IPO (â‚ą crores)
| Financial Year | Total Assets | Total Revenue | Profit After Tax | EBITDA | EPS |
|---|---|---|---|---|---|
| March 31, 2021 | 172.93 | 511.51 | 0.69 | 19.92 | 0.49 |
| March 31, 2022 | 248.54 | 818.48 | 11.33 | 30.18 | 7.99 |
| March 31, 2023 | 293.63 | 1,114.38 | 21.07 | 46.84 | 14.85 |
Risk factors to consider:
Dependence on Jindal Pipes: The company is dependent on, and derives over 90% substantial portion of its revenue from, a single customer, Jindal Pipes Limited. Cancellation by Jindal Pipes Limited or delay or reduction in their orders could have a material adverse effect on their business, results of operations, and financial condition.
Dependence on only two suppliers: The Company has entered into long-term agreements with Steel Authority of India Limited & JSW Steel Limited for Raw Material Supply, in case of any disruption in the agreement, their cost, revenue & results will be affected accordingly.
Schedule/Timeline of Vibhor Steel Tubes Limited IPO
| Issue Period | 13th February to 15th February 2024 |
|---|---|
| Price band | â‚ą 141 to 151 |
| Minimum Bid quantity | 99 & Multiples thereof |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | February 16, 2024 |
| Initiation of Refunds | February 19, 2024 |
| Credit of Shares | February 19, 2024 |
| Date of Listing | February 20, 2024 |
| Mandate end date | March 01, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | March 17, 2024 |
Anchor Investors Lock-In End Date (Remaining investment) May 17, 2024
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
How to apply to the Vibhor Steel Tubes Limited IPO?
You can apply for the Vibhor Steel Tubes Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for the Vibhor Steel Tubes Limited IPO?
You can check the allotment status for the Vibhor Steel Tubes Limited IPO on the website of the Registrar and Transfer agent.