Vibhor Steel Tubes
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Feb 2024 – 15 Feb 2024
- Listing date
- 20 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹151 per share
- Lot size
- 99 shares
- Issue type
- Book Building issue
- Total issue size
- ₹72.17 Cr
- Market cap at offer price
- ₹286 Cr
- Promoter holding
- 98.24% → 73.48% pre-issue → post-issue
- ISIN
- INE0QTF01015
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Khambatta Securities Ltd.
- Registered office
- Plot No.2, Industrial Development Colony, Delhi Road, Haryana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 14,24,907 | — | — |
Application size
Minimum 99 shares per lot, in multiples, at ₹151
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 99 | ₹14,949 |
| Retail (max) | 13 | 1,287 | ₹1,94,337 |
| S-HNI (min) | 14 | 1,386 | ₹2,09,286 |
| S-HNI (max) | 66 | 6,534 | ₹9,86,634 |
| B-HNI (min) | 67 | 6,633 | ₹10,01,583 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 14.85 | 8.99 |
| P/E (×) | 10.17 | 16.80 |
| Price to book (×) | 2.30 | — |
| Market cap | — | ₹286 Cr |
Key performance indicators
- Return on net worth
- 22.60%
- ROCE
- 16.48%
- Debt / equity
- 1.63
- PAT margin
- 1.89%
- NAV per share
- ₹65.71
- Price to book
- 2.30
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Vibhor Steel Tubes
Vibhor Steel Tubes Limited is a 2-decade-old manufacturer, exporter and supplier of steel pipes and tubes incorporated in 2003. The company produces a wide range of steel pipes in various shapes and sizes including square, round, rectangular and elliptical configurations, serving diverse applications from structural purposes to furniture and engineering equipment. The company operates manufacturing facilities with an in-house quality control team of 636 dedicated personnel and produces products compliant with international standards. The individual promoters, Mr. Vijay Kaushik, Mr. Vibhor Kaushik and Mrs. Vijay Laxmi Kaushik, collectively bring approximately thirty years of experience in mild and stainless steel welded pipes industry, with expertise spanning manufacturing, marketing, procurement, finance and customer relationship management.
Company Analysis
from DRHPVibhor Steel Tubes Limited manufactures and exports mild steel/carbon steel ERW black and galvanized pipes, hollow steel pipes, and cold rolled steel strips/coils for heavy engineering, construction, oil & gas, and related industries.
Vibhor Steel Tubes Limited is a 2-decade-old manufacturer, exporter and supplier of steel pipes and tubes incorporated in 2003. The company produces a wide range of steel pipes in various shapes and sizes including square, round, rectangular and elliptical configurations, serving diverse applications from structural purposes to furniture and engineering equipment. The company operates manufacturing facilities with an in-house quality control team of 636 dedicated personnel and produces products compliant with international standards. The individual promoters, Mr. Vijay Kaushik, Mr. Vibhor Kaushik and Mrs. Vijay Laxmi Kaushik, collectively bring approximately thirty years of experience in mild and stainless steel welded pipes industry, with expertise spanning manufacturing, marketing, procurement, finance and customer relationship management.
Objects of the Issue
- Funding of Working Capital requirements ₹6,647.20 Lakhs p.26
- General Corporate Purpose [●] p.26
- Funding of working capital requirements of our Company Rs. 5,500.00 lakhs p.92
- General corporate purposes p.92
Issue Structure
- Total Issue
- ₹6,647.20 Lakhs
- Fresh Issue
- Up to [●] equity shares of face value of Rs. 10 each aggregating upto Rs. 6,647.20 Lakhs
- Offer for Sale
- NA
- Price Band
- Rs. [●] per Equity Share (Floor Price) and Rs. [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares
- Face Value
- Rs. 10 each
Business Model
The company manufactures and supplies steel pipes and tubes to heavy engineering industries, with revenue from operations comprising sales of ERW pipes, hot dipped galvanized pipes, hollow section pipes, primer painted pipes and crash barriers. The company has entered into a long-term agreement with Jindal Pipes Limited to supply finished goods with a minimum order quantity of 1,00,000 MT per annum. Raw materials are procured from suppliers including Steel Authority of India Limited, JSW Steel Limited and Hindustan Zinc Limited, with cost of materials representing approximately 95.58% of revenue from operations in fiscal 2023.
Business Segments
SWOT Analysis
- • 2 decades of established manufacturing experience in steel pipes and tubes(p.24)
- • Experienced promoter team with ~30 years average industry experience(p.24)
- • Dedicated quality control team with 636 personnel ensuring international standards compliance(p.24)
- • Long-term supply agreement with Jindal Pipes Limited providing minimum order certainty(p.34)
- • Strong revenue growth trajectory with 36.15% YoY growth in FY2023(p.44)
- • In-house design and engineering capabilities with strong execution track record(p.101)
- • Experienced promoters and management team with specialised stainless steel pipes production(p.101)
- • Strong financial growth over three years with improving profitability margins(p.101)
- • Solid return on equity and capital employed metrics(p.104)
- • Significant production capacity expansion trajectory(p.204)
- • Established multi-location manufacturing footprint with recent capacity additions(p.197)
- • Strong financial performance with substantial revenue and profit growth(p.197)
- • Diversified product portfolio including new product launches(p.197)
- • Export market presence and international reach(p.197)
- • Experienced promoter with deep industry knowledge and network(p.203)
- • No history of project delays or cost overruns(p.197)
- • No history of labour unrest or strikes(p.197)
- • High working capital intensity with significant inventory and receivables concentration(p.37)
- • Heavy dependence on single customer (Jindal Pipes Limited) for majority of capacity(p.34)
- • Unsecured borrowings of Rs. 382.97 lakhs repayable on demand(p.38)
- • Negative operating cash flow in FY2022 of Rs. (3,454.93) lakhs(p.32)
- • Trademark application for logo still under process without statutory protection(p.46)
- • High financial leverage with debt-to-equity ratio of 1.63(p.104)
- • Significant dependence on single customer Jindal Pipes Limited(p.103)
- • Heavy reliance on external working capital funding from banks and financial institutions(p.95)
- • Lower EBITDA and PAT margins compared to industry peers(p.106)
- • High reliance on short-term and channel financing(p.270)
- • Significant borrowing concentration with elevated debt-to-equity ratios(p.240)
- • Family business structure with concentrated promoter shareholding and control(p.222)
- • Dependence on inventory financing and pledged current assets(p.260)
- • Limited financial management depth with recent KMP appointments(p.219)
- • Significant interest expense burden relative to operational profits(p.242)
- • Heavy dependence on single customer (Jindal Pipes Limited)(p.344)
- • High debt-equity ratio relative to equity base(p.305)
- • Significant unsecured related-party borrowings(p.280)
- • Multiple customer payment defaults and dishonoured cheques(p.350)
- • Promoter group litigation involving land acquisition and significant financial exposure(p.352)
- • Tax demands against directors from multiple assessment years(p.355)
- • Expiring Factory Licenses requiring renewal(p.359)
- • Pollution certification near expiry(p.359)
- • Government initiatives promoting domestic steel production through Make in India and National Steel Policy 2017(p.25)
- • Significant use of steel pipes and tubes in construction and infrastructure development(p.25)
- • Government focus on value-added steel products and alloy steel development(p.25)
- • Expansion of water infrastructure and utilities creating demand for pipes(p.25)
- • Wide range of industrial applications across oil & gas, agriculture, automobiles and engineering sectors(p.25)
- • India projected to grow at 6%+ CAGR through CY28, outpacing global growth(p.118)
- • Increased government infrastructure spending and Make in India initiatives(p.119)
- • Strong manufacturing sector growth momentum with improved demand conditions(p.119)
- • Robust construction sector expansion expected to support industrial activity(p.121)
- • Working capital funding utilisation planned for business expansion(p.92)
- • Capacity augmentation strategy with new plant in Odisha and existing unit expansions(p.197)
- • Global expansion ambitions and export market development(p.204)
- • Diversification into new product segments (Crash Barriers, Square Pipes)(p.197)
- • Access to capital markets through IPO for debt reduction and growth financing(p.208)
- • Expansion in stainless steel and specialty pipe products(p.196)
- • Revenue growth trajectory from domestic and export markets(p.334)
- • Full recovery post-COVID and production increase(p.334)
- • Improved profitability metrics and EBITDA growth(p.337)
- • Business expansion through fresh equity capital raising(p.377)
- • Access to capital markets and listing on major stock exchanges(p.367)
- • Volatility and cyclicality in steel industry pricing impacting margins and competitiveness(p.45)
- • High raw material cost concentration (95.58% of revenue in FY2023) creating price volatility exposure(p.35)
- • Dependence on availability and pricing of raw materials from limited suppliers(p.37)
- • Exposure to foreign exchange fluctuation risks with 2.30% export sales in FY2023(p.43)
- • Risk of manufacturing disruption from power/water supply shortages, labor unrest and equipment breakdown(p.43)
- • Volatile inflation rates may limit pricing power to pass costs to customers(p.54)
- • Substantial changes to Indian tax laws and regulatory regimes creating uncertainty(p.53)
- • GST and GAAR provisions subject to regulatory interpretation changes(p.53)
- • Foreign investor restrictions under FDI regulations limiting capital attraction(p.57)
- • El Nino weather patterns may cause agricultural disruption and rural demand weakness(p.119)
- • Raw material cost and commodity price volatility exposure(p.242)
- • Cyclicality and competition in the steel and pipe manufacturing industry(p.197)
- • Concentration of customer base and dependency on key customers(p.197)
- • Regulatory and environmental compliance requirements in multi-state operations(p.208)
- • Geographic concentration risk with primary operations in Haryana and Telangana(p.197)
- • Volatility and price fluctuations in raw material costs(p.314)
- • Economic downturn and capex cycles affecting customer demand(p.314)
- • Industry competition intensifying(p.345)
- • Contingent tax liability from GST dispute(p.343)
- • Dependence on limited customer base with payment risk(p.356)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Vijay Kaushik | Promoter | 28.17% | — |
| Mr. Vibhor Kaushik | Promoter | 24.47% | — |
| Mrs. Vijay Laxmi Kaushik | Promoter | 30.28% | — |
| M/s Vijay Kaushik HUF | Promoter | 10.47% | — |
| Vijay Kaushik | Promoter | 28.17% | — |
| Vijay Laxmi Kaushik | Promoter | 30.29% | — |
| Vibhor Kaushik | Promoter | 24.47% | — |
| Vijay Kaushik HUF | Promoter | 10.47% | — |
| Pratima Sandhir | Promoter Group | 2.39% | — |
| Vibhor Kaushik HUF | Promoter Group | 1.40% | — |
| RN Securities Private Limited | Promoter Group | 1.06% | — |
| Mr. Vijay Kaushik | Individual Promoter | — | — |
| Mr. Vibhor Kaushik | Individual Promoter | — | — |
| Mrs. Vijay Laxmi Kaushik | Individual Promoter | — | — |
| Mr. Vijay Kaushik | Promoter/Chairman cum Executive Director | 28.17% | — |
| Mr. Vibhor Kaushik | Promoter/Managing Director | 24.47% | — |
| Mrs. Vijay Laxmi Kaushik | Promoter/Whole Time Director | 30.29% | — |
| M/s Vijay Kaushik HUF | Promoter Group | 10.47% | — |
| Mr. Vijay Kaushik | Promoter | — | — |
| Mr. Vibhor Kaushik | Promoter | — | — |
| Mrs. Vijay Laxmi Kaushik | Promoter | — | — |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.