About Company

• Vibhor Steel Tubes was incorporated as ‘‘Vibhor Steel Tubes Private Limited’ on April 16, 2003, and subsequently converted to public company, on June 14, 2023. Vibhor Steel Tubes Ltd is a 2-decade old manufacturer and exporter of Mild Steel/Carbon Steel ERW Black and Galvanized Pipes, Hallow Steel Pipe, Cold rolled Steel (CR) Strips/ Coils. The company manufactures, exports and supplies steel pipes and tubes to various heavy engineering industries in India.

• Vibhor Steel Tubes is working with Jindal Pipes Ltd since 2003 and manufacture & supply the finished goods for “Jindal Pipes Ltd”, under the brand name “Jindal Star”. The company has a long-term agreement for the 6 years with the Jindal. Under the agreement Jindal will provide orders with a minimum quantity of 1,00,000 MT per annum.

• The company’s manufacturing units are strategically located. The Unit I is located at located Raigad, Maharashtra, suitable for export sales. Unit II is located 70 kms from Hyderabad close to Jadcherla industrial area. This proximity enables ease of logistics, power, water supply and raw materials.

• The annualized installed capacity of the two manufacturing units is 221,000 MT. Further, the company is setting up a new facility i.e. Unit III at Orissa with a capacity of 120,000 MT, which will lead to an increase in capacity to 341,000 MT by Fiscal 2025.

• The company follows international standard manufacturing practises, and the Manufacturing Facility benefits from the quality benchmarking certifications such as (i) ISO 9001:2015 for manufacturing & supply of ERW Steel Pipes and (ii) IS 1239:2004, IS 3601:2006, IS 3589:2001 from Bureau of Indian Standards.

• The company’s Revenues from Operations have grown at CAGR of ~47.6% between Fiscal 21-23 to ? 1,113.12 cr and the EBITDA Margins have improved from 3.91% to 4.21% and PAT increased from ? 0.69 Cr to ? 21.07 Cr, during the same period. The company’s Net Debt has increased to ? 126.83 Cr in Fiscal 2023 vs. ? 58.74 Cr in Fiscal 2021. For 6 months ended September 30,2023 the company reported Revenues from Operations of ? 530.51 Cr, EBITDA Margins at 4.47% and PAT of ? 8.52 Cr, while the Net Debt stood at ? 160.27 Cr.

Strengths

Competitive Strength 

• Association with Jindal Pipes;

• Strategic location of manufacturing Units;

• Experienced Promoters and senior management team;

• International Accreditations;

• Export of finished goods;

• Well-developed distribution and marketing network;

• Integrated manufacturing facility

Business Strategies 

• Expanding footprint in international market;
• Continue to enhance core strengths by attracting, retaining, and training qualified personnel;
• Continue to improve operating efficiencies through technology enhancements;
• Strengthen the Goodwill.

Company Promoters

Company Financials

Vibhor Steel Tubes Limited's revenue increased by 36.15% and profit after tax (PAT) rose by 85.91% between the financial year ending with March 31, 2023 and March 31, 2022.

Objects of the Issue

The net proceeds of the Issue less the issue-related expenses (Net Proceeds) are proposed to be utilised in the following manner:

1. Funding of working capital requirements of the company; and
2. General corporate purposes.