 The mainboard issue will be listed on NSE & BSE.                                    Operates two manufacturing facilities & one warehouse with a total capacity of 2,23,160 MT per annum in Maharashtra, Telangana and Haryana
 Supplies its products to western and southern market companies in
Maharashtra, Gujarat, Madhya Pradesh, Telangana, Karnataka and
Tamil Nadu.
 The company will utilise its net proceeds from the issue for the funding
of working capital requirements
 Khambatta Securities Limited is the Lead Manager to the Offer, while
KFIN Technologies Limited are the Registrar to the Offer.

MUMBAI, 05 OCTOBER, 2023 (GPN): 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 (OFS) 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 productsand 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 companymanufactures 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