Vibhor Steel Tubes IPO 2024: Date, Review, Price, Allotment

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Unlock Wealth: Vibhor Steel Tubes IPO Revealed! Discover Profit Potential in the Steel Industry. Act Now for Financial Gains!
Vibhor Steel Tubes IPO

In the competitive landscape of the steel pipes and tubes industry, Vibhor Steel Tubes Limited has emerged as a significant player, offering a diverse product portfolio that caters to crucial sectors such as infrastructure, agriculture, and engineering. As the Vibhor Steel Tubes IPO is currently open until February 15, 2024, let’s delve into a detailed analysis of its key aspects.

IPO Details and Financials

IPO Rate and Fundraising

The Vibhor Steel Tubes IPO is set at a price band of Rs 141 to Rs 151 per share of equity, aiming to raise approximately Rs 72.17 crore through fresh share issuances. The book build issue is open for both NSE and BSE listings, with the IPO period spanning from February 13 to February 15, 2024.

Company Background

Founded in 2003, Vibhor Steel Tubes Limited has established itself as a reputable manufacturer, exporter, and supplier of metal pipes and tubes to various heavy engineering industries in India. The company’s product portfolio includes ERW pipes, hot pipes for infrastructure and agriculture, hollow section pipes, and primer painted pipes.

IPO Objectives and Utilization of Funds

Working Capital Requirements

The primary objective of the Vibhor Steel Tubes IPO is to fund ongoing working capital requirements. The company plans to utilize INR 6,200 lakhs of the net proceeds for anticipated working capital necessities during Fiscal 2024.



General Company Goals

Apart from working capital needs, the company intends to deploy the remaining funds towards overall corporate goals, including funding growth opportunities, addressing corporate contingencies, capital expenditure, and corporate development initiatives.

Market Lot and Reservation Details

Market Lot

The minimum market lot for the Vibhor Steel Tubes IPO is 99 shares, requiring an application amount of Rs 14,949. Retail investors have the flexibility to apply for up to 1287 shares or Rs 194,337.

Reservation Quotas

The IPO reservation structure includes a maximum of 50% for QIB shares, a minimum of 35% for retail shares, and a minimum of 15% for other categories.

IPO Allotment and Listing Dates

Timeline

The IPO opened on February 13, 2024, and is set to close on February 15, 2024. The basis of allotment will be finalized on February 16, 2024, with refunds and credit to demat accounts scheduled for February 19, 2024. The listing date is expected on February 20, 2024.

Key Strengths and Opportunities

Association with Jindal Pipes Limited

Vibhor Steel Tubes benefits from a longstanding relationship with Jindal Pipes Limited (JPL), sharing a common origin in Hisar. The association with JPL facilitates transparent pricing and efficient passing of variations in raw material costs to clients.



Strategic Manufacturing Unit Location

The strategic location of Unit II, approximately 70 km from Hyderabad in the Mahabubnagar District, ensures logistical advantages, including proximity to raw materials, power, and water supply.

Advanced Distribution Marketing Network

Leveraging the network established with Jindal Pipes Limited, Vibhor Steel Tubes has developed an extensive distribution and marketing network. This network enhances customer service, ensures product availability, and facilitates efficient delivery chains.

Experienced Leadership

The promoters, Mr. Vijay Kaushik and Mr. Vibhor Kaushik, bring over four and two decades of individual experience in the Steel Pipes & Tubes industry, respectively. Their expertise, along with a seasoned management team, positions the company to capitalize on current and future opportunities.

Vibhor Steel Tubes IPO Application Process

Applying through Alice Blue

To apply for the Vibhor Steel Tubes IPO through Alice Blue, follow these steps:

  1. Open a Demat and Trading Account with Alice Blue.
  2. Check IPO details in the IPO section of the Alice Blue platform.
  3. Place your bid within the IPO’s price band.
  4. Submit your application.

Checking Allotment Status

After the allotment process, check the Vibhor Steel Tubes IPO allotment status on Alice Blue:



  1. Log in to your Alice Blue account.
  2. Navigate to the Portfolio or IPO section.
  3. Find the IPO Allotment Status sub-section.
  4. Select Vibhor Steel Tubes IPO and check the status.

Conclusion

Vibhor Steel Tubes Limited presents a promising investment opportunity in the steel pipes and tubes sector. The IPO, with a price range of Rs. 141 to Rs. 151 per share and a total issue size of Rs. 72.17 crore, showcases the company’s commitment to expansion and development. However, potential investors should carefully assess risks related to logistical costs, global economic uncertainties, and environmental factors affecting the steel industry. It is crucial to analyze the impact of volatility in metal prices and inflation on demand before making investment decisions.

FAQ’s

What is the Vibhor Steel Tubes IPO price range?

The IPO price band for Vibhor Steel Tubes is set at Rs 141 to Rs 151 per share of equity.

What is the main objective of Vibhor Steel Tubes in launching the IPO?

The primary goal is to fund ongoing working capital requirements, with a focus on anticipated needs during Fiscal 2024.

How can retail investors apply for the Vibhor Steel Tubes IPO?

Retail investors can apply online through their preferred trading platforms, such as Alice Blue, following the specified application process.

What is the minimum market lot for the Vibhor Steel Tubes IPO?

The minimum market lot is 99 shares, with a corresponding application amount of Rs 14,949.

When is the expected listing date for Vibhor Steel Tubes IPO?

The IPO is set to be listed on BSE and NSE on February 20, 2024, marking a crucial milestone in its market journey.

Can investors check the allotment status of the Vibhor Steel Tubes IPO on Alice Blue?

Yes, after the allotment process, investors can log in to their Alice Blue accounts and navigate to the IPO section to check the status.

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