top of page

Vibhor Steel Tubes Limited IPO: A Deep Dive


Vibhor Steel Tubes Limited (VSTL), a manufacturer of mild steel/carbon steel pipes and tubes, is set to launch its Initial Public Offering (IPO) on February 13, 2024. This article delves into the details of the IPO, providing investors with a comprehensive overview to make informed decisions.


Issue Details:

  • Issue Size: ₹72.17 Crores

  • Issue Type: Fresh Issue

  • Price Band: ₹141 - ₹151 per share

  • Face Value: ₹10 per share

  • Minimum Lot Size: 99 Shares

  • Subscription Dates: February 13 - 15, 2024

  • Allotment Date: February 16, 2024 (expected)

  • Listing Date: February 20, 2024 (tentative)

  • Listing Exchanges: BSE & NSE


Company Overview:

  • Established in 2003, VSTL has over two decades of experience in the steel pipe and tube industry.

  • They manufacture and export ERW black and galvanized pipes, hollow steel pipes, and cold rolled steel strips/coils.

  • The company caters to a diverse range of heavy engineering industries across India.

  • VSTL has shown consistent financial performance with increasing revenue and profits over the past few years.

Strengths:

  • Established track record and strong brand reputation.

  • Well-developed distribution network and marketing system.

  • Diversified product portfolio and customer base.

  • Consistent financial performance with growth potential.

Risks:

  • Volatile raw material prices impacting margins.

  • Competition from established players in the industry.

  • Dependence on economic cycles and infrastructure development.

  • Limited product diversification outside steel pipes and tubes.

Financial Analysis:

 

Financial Metric

FY21

FY22

FY23

FY24(H1)

Revenue(₹ Crore)

510.46

817.99

1,113.11

530.51

EBITDA(₹ Crore)

19.91

30.18

46.84

23.69

EBITDA %

3.90%

3.69%

4.21%

4.47%

Net Profit(₹ Crore)

0.69

11.33

21.07

8.52

PAT %

0.13%

1.39%

1.89%

1.61%

 Vibhor Steel Tubes IPO Vs Peers:

Company

P/E(x)

Vibhor Steel Tubes

10.17

Apl Apollo Tubes Ltd.

64.88

Hi-tech Pipes Limited

47.91

Goodluck India Ltd

31.01

Rama Steel Tubes Ltd

37.75


GMP (Grey Market Premium):

As of February 13, 2024, the GMP for VSTL IPO is ₹10 – ₹12 per share. This indicates moderate investor interest in the issue.


The Vibhor Steel Tubes Limited IPO offers investors an opportunity to participate in a growing company with a strong track record. However, it is crucial to carefully consider the risks involved before making an investment decision. Thoroughly analyze the company's financials, industry outlook, and your own risk tolerance before subscribing to the IPO.

Comments


bottom of page