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Vibhor Steel Tubes Ltd IPO - Review, Valuation, Date & GMP

  


Vibhor Steel Tubes Limited IPO - Review IPO, IPO Valuation & Todays GMP, opening date, company financials, IPO weaknessess, ipo strengths

Vibhor Steel Tubes IPO  - Complete Overview

Founded in 2003, Vibhor Steel Tubes Limited is a company in India that makes, exports, and supplies steel pipes and tubes to heavy engineering industries. 

Steel pipes and tubes from Vibhor Steel Tubes have various applications, including frames, shafts, bicycle frames, furniture, shockers, structural purposes, engineering purposes, and more. They offer a wide range of products in different shapes and sizes, meeting customer specifications.

They operate in Raigad, Maharashtra, and Mahabubnagar (Dist.), Telangana, with a warehouse in Hisar, Haryana. As of January 24, 2024, the company has 640 permanent employees. The "Vibhor" brand is expanding globally, focusing on customer feedback and marketing efforts.

Some of their products:

  • ERW pipes for water transport, oil, gas, and other non-toxic supplies.

  • Hot-dipped galvanised pipes for agriculture and infrastructure.

  • Hollow section pipes in square and rectangular forms.

  • Primer painted pipes.

  • Crash barriers for railways, highways, and roads.

 

Vibhor Steel Tubes IPO Overview:

Vibhor Steel Tubes IPO date is slated to be open for subscription from February 13, 2024, to February , 2024. This BSE NSE IPO follows a Book Built Issue IPO.

Vibhor Steel Tubes IPO price is fixed at Rs.141 to 151 per share. 

The total issue size of this IPO amounts to Rs.72.17 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

Vibhor Steel Tubes IPO timetable (Tentative):

Events

Date

IPO Opening Date

13 February 2024

IPO Closing Date

15 February 2024

IPO Allotment Date

16 February 2024

Refund initiation

19 February 2024

IPO Listing Date

20 February 2024

Vibhor Steel Tubes IPO Details:

IPO opening & closing date

13 February to 15 February 2024

Face value

Rs.10 per share

Issue Price

Rs.141 to 151  per share

Lot Size

99  Shares

Price of 1 lot

Rs.14,949

Total Issue Size

shares (aggregating up to Rs.72.17 Cr)

Fresh issue

shares (aggregating up to Rs.72.17 Cr)

Listing at

BSE NSE 

Issue Type

Book Built Issue IPO

Registrar

Kfin Technologies Limited

 

Vibhor Steel Tubes IPO Lot Details:

 

Application

Lot

Shares

Amount

Minimum Lot Investment (Retail)

1 lot

99

Rs.14,949

Maximum Lot Investment (Retail)

13 lot

1287

Rs.1,94,337

Minimum Lot Investment (HNI)

14 lot

1,386

Rs.2,09,286

Maximum Lot Investment (HNI)

66 lot

6,633

Rs.9,86,634

 

 

Vibhor Steel Tubes IPO Reservation

QIB Shares Offered

Maximum 50%

Retail Shares Offered

Minimum 35%

Other Shares Offered

Minimum 15%



 

 

Company Financial

In FY 23, the company experienced significant growth in its Financials compared to FY 22.

(Amount in Crore)

Period

Sep 30  FY 23

Mar 31  FY 23

Mar 31  FY 22

Total Assets

376.48

293.63

248.54

Total Revenue

531.24

1,114.38

818.48

PAT

8.52

21.07

11.33

Net worth

101.76

93.20

71.97

Total Borrowings

160.27

126.83

106.07



Revenue By Operations

Revenue from operations increased in FY 23 compared to the previous year.                                            

(Amount in Lakhs)

Particulars

Sep 30 FY 23

Mar 31  FY 23

Mar 31  FY 22

Revenue from operations

53,051.01

1,11,311.90

81,799.60

Other Income

73.23

125.92

48.46

Total Revenue 

53,124.24

1,11,437.82

81,848.07

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

  • Funding working capital requirements.

  • Supporting general corporate purposes.



Promoters and Management of Vibhor Steel Tubes IPO

1. Mr. Vijay Kaushik.

2. Mr. Vibhor Kaushik.

3. Mrs. Vijay Laxmi Kaushik.

4. M/s. Vijay Kaushik HUF.

Pre-issue Promoter Shareholding

98.24%

Post-issue Promoter Shareholding

 

 

Vibhor Steel Tubes IPO Lead Managers

  • Khambatta Securities Limited 

Peers of Vibhor Steel Tubes IPO

Among Vibhor Steel Tubes peers, Apl Apollo Tubes Ltd. has the highest P/E ratio, followed by others.

 Name of the company

Face value (Rs. per share)

P/ E

EPS (Basic) (Rs.)

Vibhor Steel Tubes Limited

10

10.17

14.85

Apl Apollo Tubes Ltd.

2

64.88

23.15

Hi-tech Pipes Limited

1

47.91

3.06

Goodluck India Ltd

2

31.01

33.31

Rama Steel Tubes Ltd

1

37.75

1.22



 

 

Evaluation

The IPO is priced within the range of Rs. 141 to Rs. 151 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 14.85 from the last year, the resulting P/E ratio is 10.17x.

- Taking into account the weighted EPS of Rs 10.17 for the last three years, the P/E ratio amounts to 14.84x.

    

Comparative Analysis with Listed Peers:

- Apl-Apollo Tubes Ltd. has a P/E ratio of 64.88x (the highest).

- Goodluck India Ltd has a P/E ratio of 31.01x (the lowest).

- The industry's average P/E is 45.39x.

As a result, the IPO price range, with a P/E ratio ranging from 10.17x to 14.84, seems undervalued in comparison to the industry average of 45.39x.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

  • Healthy expansion plans in the oil & gas pipeline infrastructure.

  • Government focuses on infrastructure development.

  • Increase in budgetary allocation towards infrastructure, railways, etc.

  • Government initiatives like 'One nation, One gas grid,' 'Jal Jeeven mission,' and 'Pradhan Mantri Awas Yojana.'

  • Strong demand from end-user segments including real estate, water infrastructure, automobiles, railways, and capital goods.

 

IPO's Weaknesses

  • High logistic costs.

  • Potential impact of recession fears and weak global demand on export growth.

  • Growing environmental concerns regarding carbon emissions from the steel industry.

  • Volatility in steel prices, posing a potential threat to business profitability.

  • Persistent inflation, leading to reduced demand for products and potential delays in project execution.



IPO GMP Today

The latest GMP of Vibhor Steel Tubes IPO is Rs. 140.

 

 

 

Conclusion

In conclusion, Vibhor Steel Tubes Limited presents itself as a promising player in the steel pipes and tubes industry, with a diverse product portfolio catering to various sectors like infrastructure, agriculture, and engineering. The IPO, scheduled to open from February 13 to February 15, 2024, comes at a price range of Rs. 141 to Rs. 151 per share, with a total issue size of Rs. 72.17 crore. However, potential weaknesses such as high logistic costs, global economic uncertainties, and environmental concerns in the steel industry should be carefully monitored. Investors should assess the risks associated with volatility in steel prices and inflation impact on demand.

As with any investment decision, prospective investors are encouraged to conduct thorough due diligence, evaluate their risk tolerance, and seek professional financial advice if needed. 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

 

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Frequently Asked Questions

+

The Vibhor Steel Tubes IPO is scheduled to open for subscription from February 13, 2024.

+

The IPO price range for Vibhor Steel Tubes shares is set at Rs. 141 to Rs. 151 per share

+

The total issue size for the Vibhor Steel Tubes IPO is Rs. 72.17 crore.

 

+

The lot size for Vibhor Steel Tubes IPO is 99 shares, with one lot costing Rs. 14,949.

 

+

The Vibhor Steel Tubes IPO is scheduled to close on February 15, 2024.

 



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