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Vibhor Steel Tubes IPO gets overwhelming response across investor category

20 February 20246 mins read by Angel One
Based on the IPO price, the company's shares are at a lower Price to Earnings multiple compared to its peers, peer comparison is available inside.
Vibhor Steel Tubes IPO gets overwhelming response across investor category
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

In India, listing companies in the primary market has become a new trend in the year 2023, with many companies choosing to go public. This trend continues in the current year as well.

One of the latest IPOs closing today on the main board, namely Vibhor Steel Tubes which manufactures, exports, and supplies steel pipes and tubes to various heavy engineering industries in India, has attracted significant attention during this IPO window, particularly due to substantial subscription levels throughout the IPO subscription period. The IPO opened on February 13 and is closing today, with plans to be listed on February 20, Tuesday.

Objects of the Issue

The net proceeds of the issue, after deducting the related expenses, are intended to be utilized for the following purposes. Firstly, the funds will be directed towards meeting the working capital requirements of the company, ensuring smooth operational continuity. Additionally, the net proceeds will be allocated for general corporate purposes.

Massive Subscription

At the time of writing this article, which is as of February 15, 2024, at 4:03:00 PM, the Vibhor Steel Tubes IPO has witnessed an extraordinary subscription of 316.50 times.

The subscription figures for different categories are as follows: 195.31 times in the retail category, 191.41 times in the QIB category, and an impressive 770.72 times in the NII category. This overwhelming response from investors signifies substantial demand and interest in the public offering.

Investor Category Subscription (times) Shares Offered Shares bid for Total Amount (Rs Cr.)
Anchor Investors 1 14,24,907 14,24,907 21.52
Qualified Institutions 191.41 9,50,064 18,18,47,952 2,745.90
Non-Institutional Buyers 770.72 7,12,491 54,91,29,834 8,291.86
Retail Investors 195.31 16,62,479 32,47,02,576 4,903.01
Employees 203.94 29,502 60,16,725 90.85

Here are the day-wise subscription details across various categories:

Date QIB NII Retail Employee Total
Day 1 3.81 52.14 35.71 30.22 30.12
Feb 13, 2024
Day 2 9.13 270.92 97.9 85.93 109.4
Feb 14, 2024
Day 3 191.41 770.72 195.31 203.94 316.5
Feb 15, 2024

Financial Performance

Particulars 30-Sep-23 31-Mar-23 31-Mar-22 31-Mar-21
Revenue (in cr) 531.24 1,114.38 818.48 511.51
Profit After Tax (in cr) 8.52 21.07 11.33 0.69
Net Profit Margin % 1.60 1.89 1.38 0.13
Total Borrowing (in cr) 160.27 126.83 106.07 58.74
Assets (in cr) 376.48 293.63 248.54 172.93
Net Worth (in cr) 101.76 93.20 71.97 60.49

Peer Comparison

Company Name PE x Sales Rs Cr PAT Rs Cr Margins % Debt to Equity x ROE % ROCE %
Vibhor Steel Tubes 10.17 1,114.38 21.07 1.89 1.63 25.51 16.48
Gandhi Special Tubes 19.13 166.00 47.34 26.57 27.02 35.97
Venus Pipes 42.59 754.38 44.21 7.99 0.41 19.58 22.94
Goodluck India 25.57 3,386.83 86.90 2.83 0.96 16.33 16.49
Hi-Tech Pipes 48.17 2,194.83 28.90 1.81 0.56 13.58 14.86
APL Apollo Tubes 51.63 17,784.15 641.86 3.97 0.36 23.50 26.90

Business Overview

Founded in 2003, Vibhor Steel Tubes Limited is a prominent player in the manufacturing, export, and supply of steel pipes and tubes, catering to various heavy engineering industries in India. The company boasts a diversified product portfolio, encompassing ERW pipes designed for applications in water transport, oil, gas, and other non-toxic supplies. Additionally, the company offers primer-painted pipes and crash barriers tailored for use on railways, highways, and roads.

With manufacturing facilities strategically located in Raigad, Maharashtra, and Mahabubnagar district, Telangana, along with a warehouse situated in Hisar, Haryana, Vibhor Steel Tubes Limited is well-equipped to meet industry demands.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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