Fresh Issue: 72.17 Cr
Offer for Sale: ₹[.]Crore

Vibhor Steel Tubes IPO Timeline

IPO Open Date:	February 13, 2024
IPO Close Date:	February 15, 2024
Basis of Allotment:	February 16, 2024
Refunds:	February 19, 2024
Credit to Demat Account:	February 19, 2024
IPO Listing Date:	February 20, 2024

About

Vibhor Steel Tubes Limited is a leading manufacturer of Hollow Sections (Pipes and Tubes) in India. The Company was incorporated in 1996 and is headquartered in Delhi. The Company has a manufacturing facility in Mandi Gobindgarh, Punjab.

The Company’s products are used in a variety of industries, including construction, automotive, engineering, and agriculture. The Company’s customers include leading companies such as Larsen & Toubro, Tata Projects, and Jindal Steel & Power.

OBJECTIVE

To meet the working capital requirements of the Company.
For general corporate purposes.

POSITIVE

Strong financial performance: The company has shown good revenue and profit growth in recent years.
Leading position in a growing market: Vibhor Steel Tubes is a leader in the Hollow Sections market in India, which is expected to grow due to increasing demand in construction, automotive, and other industries.
Experienced management team: The company has a team with experience in the steel industry.
Reasonable valuation: The IPO price appears to be in line with valuations of other steel companies in India.

NEGATIVE

Cyclical industry: The steel industry is cyclical and subject to fluctuations in demand and prices, which could impact the company’s performance.
Competition: The company faces competition from other steel companies in India, which could put pressure on margins.
Raw material dependence: The company’s operations are dependent on the availability and price of steel billets, which could be volatile.
Limited track record: The company has been profitable in recent years, but it has a limited track record compared to some other listed steel companies.

So, how does Vibhor Steel Tubes IPO Fare in Terms of Financials?

Financial Details

Period Ended	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	376.48	293.63	248.54	172.93
Revenue	531.24	1,114.38	818.48	511.51
Profit After Tax	8.52	21.07	11.33	0.69
Net Worth	101.76	93.20	71.97	60.49
Total Borrowing	160.27	126.83	106.07	58.74
Amount in ₹ Crore

FINANCIAL REVIEW

Positives:

Strong Revenue Growth: Revenue has doubled in the last year and grown by over 100% in the past two years, indicating strong demand for their products.
Profitability: They’ve become profitable in the last two years, with profit after tax increasing significantly.
Improving Net Worth: While slower than revenue growth, net worth has also increased, indicating financial stability.
Moderate Debt Growth: Though debt has increased, it’s at a slower pace than assets, showing controlled borrowing.

Negatives:

Limited Track Record: Only two years of profitability offer a limited view of financial health and sustainability.
High Debt: Although growing slower than assets, the debt level is still relatively high compared to net worth.
Dependence on Industry: Steel industry cyclicality could impact future performance.

Vibhor Steel Tubes IPO Valuation

KPI	Values
ROE	25.51%
ROCE	16.48%
Debt/Equity	1.63
RoNW	22.60%
P/BV	2.3

Vibhor Steel Tubes IPO – SWOT Analysis

Strengths

Strong financial performance: Consistent revenue and profit growth in recent years.
Market leader: Leading player in the Indian Hollow Sections market with good brand recognition.
Experienced management: Team with proven experience in the steel industry.
Reasonable valuation: IPO price seems competitive compared to peers.
Growing market: Indian steel industry projected to expand, with increasing demand in construction, automotive, and other sectors.

Weaknesses

Limited track record: Relatively young company compared to some listed competitors.
Dependence on raw materials: Fluctuations in steel billet prices and availability can impact profitability.
Competition: Faces competition from established players, both domestic and international.
Limited product portfolio: Primarily focused on Hollow Sections, susceptible to market changes in that segment.
High debt levels: Relatively high debt-to-equity ratio compared to some peers.

Opportunities

Expansion into new segments: Possibility to diversify product portfolio to reduce dependence on specific markets.
Export potential: Growing global demand for steel products could open up export opportunities.
Technological advancements: Adoption of new technologies could improve efficiency and reduce costs.
Government initiatives: Supportive government policies in the steel sector could benefit the company.
Strategic partnerships: Collaborations with other companies could expand reach and market share.

Threats

Economic slowdown: Potential economic slowdown could dampen demand for steel products.
Trade wars: Trade conflicts or protectionist policies could impact exports and raw material prices.
Environmental regulations: Increasing environmental regulations could raise compliance costs.
Fluctuations in currency exchange rates: Can impact import costs and export competitiveness.
Industry consolidation: Potential consolidation in the steel industry could increase competition.

COMPETITIVE ANALYSIS: MARKET PEERS

Here are some of the key market peers of Vibhor Steel Tubes IPO:

Peers:

APL Apollo Tubes Ltd.
Hi-Tech Pipes Ltd.
Goodluck India Ltd.
Rama Steel Tubes Ltd.

Vibhor Steel Tubes IPO GMP

Grey market premium as on 12-02-2024= Rs – 120/ Share

Disclaimer:

IPO Grey Market Premium (Vibhor Steel Tubes IPO GMP) mention is valid for the specific date as mentioned in the header.
We are not buying and selling IPO forms on IPO Grey Market.
Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.

Vibhor Steel Tubes IPO

🔴 Live Subscription Status 🔴

15/02/2024 5:00 PM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)	10,17,441	3.56	8.52	178.73
Non Institutional Investors(NIIs)	7,63,023	48.28	252.07	721.33
Retail Individual Investors(RIIs)	17,80,386	32.39	90.11	188.17
Employees	31,595	27.38	78.74	201.48
Total	35,92,445	27.56	101.30	298.86

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Vibhor Steel Tubes IPO Review & Details

Vibhor Steel Tubes IPO Details