Today we are going to discuss about Vibhor Steel tube IPO whose as per sources grey market premium is 80%.
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If we consider grey market premium, then in retail category,
one lot can get a profit of Rs 9,000 and in H&I category, Rs 1,25,000. I am very sure due to this introduction, your excitement for this IPO will increase.
Vibhor Steel tube IPO Let’s discuss in detail
The name of the company is Vibhor Steel Tubes Ltd. In 2003, the company was incorporated. Manufacture, export and supply steel pipes and tubes. Especially, it provides heavy engineering industries in India. If we talk about the company’s product portfolio, then crash barriers, primer painted pipes, hollow section pipes, hot dipped galvanized pipes and ARW pipes are part of the company’s portfolio.
Vibhor Steel tube IPO All details
Vibhor Steel tube IPO: On 13th Feb, the IPO will open.
Vibhor Steel tube IPO: On 15th, the IPO will close.
Vibhor Steel tube IPO: On 16th, the allotment will be decided.
Vibhor Steel tube IPO: On 19th, you will get a refund or share allotment.
Vibhor Steel tube IPO: On 20th is its tentative listing date.
Vibhor Steel tube IPO Lots For Apply
In retail category, one lot of 99 shares will be of Rs 14,949. In H&I small category, one basket of 14 lots will be made. In H&I big category, one basket of 67 lots will be made. The size and the type of IPO, because the size of this IPO is also very small. In any segment, there is no use of applying more than one basket or one lot. Because there is a possibility of oversubscription. If I apply in retail category, then I will apply for only one lot. If I think that the IPO is good and I want to apply in H&I small category, then I have to apply for only 14 lots. In H&I big, I have to apply for only 67 lots. If I apply for more than this, then there will be no use. QIB 50%, 15% for H&I category and 35% quota for retail. Its IPO is only 72 crores. Its IPO size is very small. The price band is from Rs 141 to Rs 151. If you apply in retail, then you have to use cut-off price. In H&I category, you have to type the price of Rs 151. NSE and BSE will be listed on both. If we look at the financials, then from Rs 172 crores to Rs 376 crores in 2.5 years. It is an amazing growth rate. If we talk about revenue, then also in 2022 vs 2023, there is a growth of 36.15%. And in profit after tax, you have a growth rate of 85.91%. And if we talk about 2021, then there was a profit of only Rs 16 lakh. In 2022, there is a profit of Rs 11 crores. In 2023, there is a profit of Rs 21 crores. And in the next 6 months, there is a profit of Rs 9 crores.
Vibhor Steel tube Financials are growing at a good rate
Financials are growing at a good rate. Return on equity is 25.51%. Return on capital employed is 16.48%. Debt-to-equity ratio is 1.63%. There is a debt of Rs 160 crores. There is a little more leverage. Price-to-book value is 2.3%. POS is 14.85%. And PE ratio is 10.17%. The valuation on which this IPO price is, which is the PE ratio of this company, which is bringing the IPO, is very attractive. The valuation on which the company is bringing, the company has left the scope on listing. It is a positive point. The object of the issue is to fund working capital and general corporate purpose. If we talk about peer comparison, APL Apollo Tubes has a PE ratio of 64. Hitech Pipe has a PE ratio of 47. Goodluck India has a PE ratio of 31. Rama Steel Tubes has a PE ratio of 37. This means that the company is trying to bring an IPO on an attractive valuation from its peers. I feel this is the reason why it is getting a good response in the grey market. I am personally very excited for this IPO. I personally find it very attractive to study further.
How do you find this IPO?
Comment below.
And if you apply, put your opinion in the comments.
