Vibhor Steel Tubes IPO subscribed 27 times, retail portion booked 32x on Day 1

Rashi Peripherals to debut on the bourses on February 13

The public issue of Vibhor Steel was fully subscribed within minutes and recorded 27.56 times booking on the first day of bidding. Retail investors bid 32.39 times, high net-worth individuals picked up 48.28 times and qualified institutional buyers bought 2.56 times their allotted quota.

The price band for the issue, which opened for subscription on February 13 and will close on February 15, has been fixed at Rs 141-151 a share. It is entirely a fresh issue of shares. The anchor book opened for a day on February 12 with the company raising Rs 22 crore from Saint Capital Fund, Chhattisgarh Investments Ltd and Neomile Growth Fund-Series I.

Also Read: Vibhor Steel Tubes IPO: 10 things to know before subscribing to Rs 72-crore issue

Vibhor Steel's revenue from operations in FY23 surged 36 percent to Rs 1,113.12 crore over last year, while profit after tax jumped 86 percent to Rs 21 crore on recovery from the Covid-19 pandemic.

In the six months ended September 30, 2023, its revenue stood at Rs 530.51 crore, PAT at Rs 8.52 crore and EBITDA at Rs 23.69 crore. In the same period, the PAT margin was at 1.61 percent, the EBITDA margin at 4.47 percent, the debt-equity ratio at 1.83 times, RoCE at 6.97 percent and RoE at 8.37 percent.

The company plans to use the net proceeds to fund the working capital requirements and for general corporate purposes.

Also read: Vibhor Steel Tubes garners Rs 22 cr from anchor investors

Vibhor Steel Tubes is a manufacturer and exporter of mild steel/carbon steel ERW black and galvanised pipes, hallow steel pipes and cold-rolled steel strips/ coils. The company has a long-term agreement for six years with Jindal Pipes. Under the agreement, Jindal will provide orders with a minimum quantity of 1,00,000 MT per annum to fill the majority capacity of Unit I & Unit II of the company. It has two manufacturing facilities in Raigad, Maharashtra, and Mahabubnagar, Telangana, and a warehouse in Haryana's Hisar.