Vibhor Steel Tubes, a renowned player in the manufacturing and exporting of Mild Steel/Carbon Steel ERW Black and Galvanized Pipes, Hallow Steel Pipe, and Cold-rolled Steel (CR) Strips/Coils, is set to launch its Initial Public Offering (IPO) worth Rs 72.17 crores. The IPO, consisting entirely of fresh shares, is scheduled to open for subscription on February 13, 2024, and will remain open until February 15, 2024.
Investors eyeing participation in this IPO have the opportunity to subscribe to shares within a price band of Rs 141 to Rs 151 per share. The minimum lot size for retail investors stands at 99 shares, requiring a minimum investment of Rs 14,949. For sNII investors, the minimum investment is set at 14 lots (1,386 shares), amounting to Rs 2,09,286, while bNII investors are required to invest in 67 lots (6,633 shares), totaling Rs 10,01,583.
Khambatta Securities Limited is acting as the book running lead manager for the Vibhor Steel Tubes IPO, while Kfin Technologies Limited has been appointed as the registrar for the issue.
Grey Market Premium (GMP) for Vibhor Steel Tubes IPO currently stands at Rs 130 as of February 12. With a price band of Rs 151.00, the estimated listing price for Vibhor Steel Tubes IPO is projected at Rs 281, indicating a potential gain of 86.09 per cent per share.
Vibhor Steel Tubes Ltd. (VSTL) boasts a commendable two-decade-long legacy in the industry, catering to various heavy engineering industries in India. Its products find extensive applications in sectors such as frames and shafts, bicycle frames, furniture, structural purposes, and engineering needs.
In terms of financial performance, Vibhor Steel Tubes has demonstrated consistent growth over the years. In the fiscal year 2021, the company recorded total revenues of Rs 511.51 crore and a net profit of Rs 0.69 crore. This performance improved significantly in FY22, with total revenues of Rs 818.48 crore and a net profit of Rs 11.33 crore. FY23 saw further growth, with total revenues reaching Rs 1114.38 crore and a net profit of Rs 21.07 crore.
In the first half of FY24, ending on September 30, 2023, Vibhor Steel Tubes reported a net profit of Rs 8.52 crore on a total revenue of Rs 531.24 crore, indicating a positive trajectory in its financial performance.
With its established reputation, robust financial performance, and potential for future growth, the Vibhor Steel Tubes IPO presents a promising opportunity for investors looking to capitalize on the booming infrastructure and manufacturing sectors in India. As the IPO subscription window opens, investors will keenly observe the market response and the trajectory of Vibhor Steel Tubes in the coming months.