Vibhor Steel Tubes Limited IPO

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Vibhor Steel Tubes Limited specializes in manufacturing and exporting a diverse range of steel products, including Mild Steel/Carbon Steel ERW Black and Galvanized Pipes, Hollow Steel Pipes, and Cold Rolled Steel (CR) Strips/ Coils. With a legacy spanning over two decades, the company serves various heavy engineering industries across India. Their product lineup is extensive, catering to different uses such as frames, shafts, bicycle frames, furniture, shockers, and various structural and engineering purposes. They offer steel pipes and tubes in a variety of shapes, sizes, and lengths to meet specific customer requirements, including square, round, rectangular, and elliptical shapes.

The company has a renewed agreement with Jindal Pipes Limited (JPL), dated April 1, 2023, to manufacture and supply products under the “Jindal Star” brand. Key terms of this agreement include flexible pricing based on mutual agreement and market conditions, with the assurance that prices will cover raw material and variable costs. JPL commits to a minimum annual order of 100,000 MT, ensuring substantial utilization of Vibhor Steel Tubes’ capacity. The agreement also outlines compensation for any supply or off-take shortfalls and includes a turnover discount for JPL. This partnership is set for an initial term of six years, with options for renewal.

Vibhor Steel Tubes prides itself on its rigorous quality control, maintained by a dedicated team of 627 personnel under the board’s supervision. This ensures compliance with international standards for both raw materials and finished products. The company’s leadership, including promoters Mr. Vijay Kaushik, Mr. Vibhor Kaushik, and Mrs. Vijay Laxmi Kaushik, brings substantial experience and expertise in the mild steel and stainless steel welded pipes and tubes industry, alongside skills in marketing, procurement, finance, accounting, and customer relations.

Objects of the Vibhor Steel Tubes Limited IPO:

The net proceeds of the Issue less the issue related expenses (Net Proceeds) are proposed to be utilised in the following manner: i. Funding of working capital requirements of the company; and ii. General corporate purposes.

Vibhor Steel Tubes Limited IPO Details:

Open Date: Feb 13 2024
Close Date: Feb 15 2024
Face Value: ₹ 10 Per Equity Share
Issue Size: 72.17 Cr.
Lot Size: 99 Shares
Issue Price: ₹ 141 - 151 Per Equity Share
Listing At: NSE,BSE
Listing Date: Feb 20 2024

Promoters And Management:

Mr. Vijay Kaushik, aged 70, serves as the Chairman and Director of the Company since February 26, 2009. Born in Hisar, Haryana, he pursued his graduation from Government College, Hisar, in 1972, followed by an LLB from Delhi University in 1975. Initially practicing law alongside his father, a distinguished criminal lawyer, he transitioned to manufacturing in 1978, focusing on agricultural implements, stainless steel coils, and steel pipes. With over 40 years in manufacturing and more than 20 years in the ERW pipes and tubes sector, Mr. Kaushik brings vast experience to the table. He is also a director at Jindal Drilling and Industries Ltd, part of the esteemed DP Jindal Group, showcasing a robust network and deep industry insights, especially in oil drilling. His expertise spans product knowledge, market dynamics, and the financial operations of the company. Mr. Vibhor Kaushik, aged 40, serves as the Managing Director of the Company since April 17, 2003. A native of Hisar, Haryana, he completed his electrical engineering degree from Arizona State University, USA, in 2006. With 17 years at the helm, Mr. Kaushik has significantly enhanced the factory's performance, increasing its capacity from 12,000 MT to over 221,000 MT per annum. Under his leadership, the production capacity has expanded nearly 19-fold, demonstrating his ambition to take the company global. He has adeptly managed the company's operations, staff, and business growth, focusing on production and domestic sales. Currently, Mr. Kaushik is exploring opportunities in the export market, having successfully commissioned the Telangana project in record time. Ms. Vijay Laxmi Kaushik, aged 67 years and is currently designated as Whole Time Director of the Company. Born in Gurgaon, Haryana, India on March 05, 1956 she did her schooling in Gurgaon and a full-time graduation from Government college Gurgaon in 1976. She is a Whole time Director of the company. She has goods interpersonal skill and also helps in the administration of the company.

Financials of Vibhor Steel Tubes Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Equity Share Capital 1,418.30 1,418.30 1,418.30
Reserves 4,631 5,779 7,901
Borrowings 7,422 12,705 15,238
Trade Payables 3,291 4,265 4,162
Other Liabilities 532 687 644
Total Liabilities 11,244 17,656 20,043
Net Block 5,203 4,986 5,433
Other Assets 100 193 784
Total NC Assets 5,303 5,179 6,217
Receivables 3,928 4,481 5,445
Inventory 5,106 10,121 12,030
Cash & Bank 1,547 2,099 2,555
Other Assets 1,409 2,974 3,116
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Sales 51,047 81,800 111,312
Raw Material Cost 41,735 75,177 106,510
Change in Inventory 3,633 -668 -5,225
Employee Cost 1,361 1,498 1,752
Other Expenses 2,430 2,823 3,717
Other Income 104 48 126
Depreciation 658 612 637
EBITDA 1,992 3,018 4,684
EBITDA Margin 3.90% 3.69% 4.21%
Interest 917 870 1,226
Profit before tax 416 1,536 2,822
Tax 347 403 716
Net profit 69 1,133 2,107
NPM (%) 0.13% 1.38% 1.89%
C. Cash Flow Statement
Particular (In Lakhs) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 1,995 2,962 4,593
Receivable 361 -553 -964
Inventory 3,443 -5,015 -1,909
Payable -1,079 973 -103
Other WC Items 107 -1,667 -494
Working Capital Changes 2,831 -6,262 -3,470
Direct Taxes -284 -155 -420
Net Cash Inflow from Operating Activity 4,542 -3,455 703
Cash from Investing Activity
Fixed assets purchased -180 -395 -1,086
Fixed assets sold 0 0 3
Other investing items 91 -12 -470
Net cash inflow from investing activities -89 -407 -1,553
Cash from Financing Activity
Proceeds from borrowings 0 5,284 2,606
Repayment of borrowings -2,731 0 -73
Intrest paid fin -917 -870 -1,226
Net Cash Flow 804 551 457

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Vibhor Steel Tubes Limited 1113 21 11.10 13.6 151 286
APL Apollo Tubes Limited 16166 642 23.14 50.2 1383 38,394
Hi-Tech Pipes Limited 1,861 29 2.26 50.1 152 2,078
Goodluck India Limited 3,072 87 31.88 27.9 1,080 3,432
Rama Steel Tubes Limited 1,337 27 0.57 66.7 43.3 2,136
* All the data is as per FY23.

Recommendation on Vibhor Steel Tubes Limited IPO:

Lead Manager of Vibhor Steel Tubes Limited IPO:

  1. Khambatta Securities Limited

Registrar of Vibhor Steel Tubes Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Vibhor Steel Tubes Limited Plot No. 2, Industrial Development Colony, Delhi Road, Hisar -125005 Phone: +91 7030322880 Email: Website:

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