05, October 2023: Vibhor Steel Tubes Ltd. (VSTL), a manufacturer of high-quality steel tubes and pipes, today announced the filing of its Draft Red Herring Prospectus (DRHP) with SEBI. The company’s offering comprises a fresh issue of equity shares (face value Rs. 10 each), aggregating to an issue size of up to Rs. 66.47 crore, through book-building route. There will be no Offer for Sale component. The company has appointed Khambatta Securities Limited as Lead Manager to the Issue and KFIN Technologies Limited as the Registrar to the Issue.
The company will utilise its net proceeds from the issue to fund its working capital requirements. The company’s equity shares are proposed to be listed on the NSE and BSE.
VSTL manufactures steel products such as Electric Resistance Welded Pipes, Hot-dipped Galvanized Pipes, Hollow section pipes, Primer painted pipes, SS Pipes and Crash Barriers at its plants located in Maharashtra, Telangana and Haryana with a total capacity of 2,23,160 MTPA. The company supplies its products to western and southern market companies in Maharashtra, Gujarat, Madhya Pradesh, Telangana, Karnataka and Tamil Nadu.
Vijay Kaushik, Chairman and Executive Director, Vibhor Steel Tubes Limited, said, “Our consistent efforts in manufacturing and supplying the best quality steel products over the years have paid off in the form of satisfied clientele across India. As we are all set to explore new opportunities and geographies for our products and strengthen our supply chains, we are raising funds through IPO. In an industry laden with unstable policy regimes, we have successfully built the product line and have been part of the domestic manufacturing narrative for a while now.”
The company has mapped out business plans to expand its operations by setting up a manufacturing unit with a capacity of 1,20,000 MTPA in Orissa and expanding the current unit’s capacity in Telangana from 96,000 MTPA to 1,52,000 MTPA.
VSTL has also entered into an agreement with Jindal Pipes Limited in April 2023. As part of the agreement, the company manufactures and supplies finished goods worth 1,00,000 MTPA to “Jindal Pipes Limited, which sells the products under the brand name “Jindal Star”.
The company’s total revenue for FY23 stood at Rs. 1,112.11 crore compared to Rs. 817.99 crore in FY22. Its EBIDTA for FY23 was Rs. 46.84 crore, compared to Rs. 30.18 crore in FY22. The company’s PAT was 21.06 crore in FY23, compared to Rs. 11.33 crore in FY22.
In the last five years, finished steel production has grown at a CAGR of 4.8% to 122 MT in FY23 from 101 MT in FY19. The production growth has been backed by a rise in domestic steel consumption on account of growing economic activities in the country, supported by an increase in infrastructure and construction spending by the government and a rise in automobile and consumer durable demand, among others. (Source: CMIE)
During YTD FY24, finished steel production grew by 13.4% on a y-o-y basis, backed by strong demand in the domestic market.
For more information, please visit: www.vstlindia.com Contact details:
Disclaimer: VIBHOR STEEL TUBES LIMITED is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed the DRHP with SEBI. The DRHP is available on the website of BRLM (https://www.khambattasecurities.com/pdf/DRHP_Vibhor_Steel_Tubes_Limited.pdf), on the website of SEBI and of the Company (https://www.vstlindia.com/investor/DRHP_Vibhor%20Steel%20Tubes%20Limited.pdf). Any potential investors should note that investment in equity shares involves a high degree of risk, and for details relating to the same, please refer to the DRHP, including the section titled “Risk Factors”, beginning on page 29 of DRHP.
The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act) or any state securities laws in the United States, and unless so registered, and may not be issued or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in accordance with any applicable U.S. state securities laws. The Equity Shares are being issued and sold outside the United States in ‘offshore transactions in reliance on Regulation “S* under the Securities Act and the applicable laws of each jurisdiction where such issues and sales are made. There will be no public offering in the United States.