Vibhor Steel Tubes Ltd, a leading manufacturer and exporter of steel pipes and tubes serving diverse heavy engineering industries in India, is gearing up for its initial public offering (IPO) scheduled to commence on February 13th.
The IPO, valued at ₹72.17 crore, is structured as a book-built issue and will welcome public subscriptions until February 15th.
Established in 2003, Vibhor Steel Tubes has built a strong reputation for its quality products and reliable service within the steel industry.
Before the IPO kickstarts, here are some key insights to understand about Vibhor Steel Tubes and its upcoming IPO:
Vibhor Steel Tubes IPO: What You Need to Know
Vibhor Steel Tubes is set to make its debut in the market with its initial public offering (IPO), offering investors a chance to participate in its growth journey.
When to Participate: The bidding for the Vibhor Steel Tubes IPO opens on Tuesday, February 13, and will continue until Thursday, February 15.
Allotment and Listing Dates: The allotment for the IPO is expected to be finalized on February 16. The company’s shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) with a tentative listing date of February 20.
Details and Size: The size of the IPO stands at ₹72.17 crore, with the entire issue comprising fresh shares.
Price Band and Lot Size: Investors can subscribe to the IPO within a price band of ₹141 to ₹151 per share. The minimum lot size for application is set at 99 shares, requiring a minimum investment of ₹14,949 for retail investors.
Objectives of the IPO: Proceeds from the IPO will primarily be allocated towards fulfilling working capital requirements and supporting general corporate purposes.
Reservation for Investors: The IPO has reserved up to 50% of the net offer for Qualified Institutional Buyers (QIBs), 35% for Retail Investors, and 15% for Non-Institutional Investors (NIIs).
Key Players: Khambatta Securities Ltd is overseeing the IPO as the book running lead manager, while Kfin Technologies Ltd is serving as the registrar.
Market Premium: The grey market premium (GMP) for Vibhor Steel Tubes IPO today stands at ₹130 per share, indicating a significant premium of 86.09% over the issue price of ₹281 apiece.
About Vibhor Steel Tubes
Vibhor Steel Tubes Ltd, a prominent player in the steel industry, specializes in manufacturing and exporting a range of Mild Steel / Carbon Steel ERW Black and Galvanized Pipes, Hallow Steel Pipe, and Cold Rolled Steel (CR) Strips/ Coils. With a rich history spanning two decades, the company has established itself as a trusted supplier to various heavy engineering industries across India.
In the latest financial report, Vibhor Steel Tubes Ltd demonstrated commendable growth in both revenue and profitability. The company’s revenue surged to ₹1,114.38 crore in FY23, marking a significant increase from ₹818.48 crore in FY22. Notably, the revenue for the period ending September 2023 stood at ₹531.24 crore.
Similarly, the net profit of the company witnessed a substantial rise, reaching ₹21.07 crore in FY23 compared to ₹11.33 crore in FY22. The bottom line for the period of April-September 2023 also showed promising figures, totaling ₹8.52 crore.
Vibhor Steel Tubes Ltd’s impressive performance underscores its commitment to delivering quality products and services while adapting to the evolving needs of its clientele. With a strong foundation and a focus on innovation, the company continues to thrive in the competitive steel market, contributing significantly to the growth of India’s heavy engineering sector.