Vibhor Steel Tubes files DRHP with Sebi to raise Rs 66.47 crore
Vibhor Steel Tubes, the two-decade-old manufacturer of steel pipes and tube products, has filed preliminary papers with the capital markets regulator Sebi to raise Rs 66.47 crore via an initial public offering (IPO).
The offer consists of only a fresh issue by the company and there is no offer-for-sale component.
The company will utilise net fresh issue proceeds mainly for working capital requirements of Rs 55 crore, and the remaining for general corporate purposes.
About its business:
The Haryana-based company manufactures and exports steel pipes and tubes to various heavy engineering industries in India, which are used for frames and shafts, bicycle frames, furniture, shockers, and structural & engineering purposes.
Meanwhile, it has renewed its agreement with Jindal Pipes with effect from April 1, 2023, to manufacture & supply the finished goods under the brand name Jindal Star, to Jindal Pipes and its approved customers based on monthly card rates. The tenure of this agreement is for six years and can be further renewed if required by both parties.
Vibhor Steel operates its business through two manufacturing units – one is in Raigad, Maharashtra, through which 100 percent of export sales take place, and the second unit is located in Mahabubnagar district, Telangana.
Its financial performance remained better in the last fiscals, with net profit growing from Rs 11.33 crore in the year ended March FY22, to Rs 21.06 crore in FY23, and revenue from operations rising to Rs 1,113.12 crore, from Rs 818 crore during the same period.
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