The initial public offering (IPO) of Vibhor Steel will open for subscription on Tuesday, February 13, 2023. The issue closes on February 15. The company plans to raise Rs 72 crore through the IPO. Here are 10 things to know before subscribing to the issue

1) What is the business overview of Vibhor Steel?

Vibhor Steel Tubes is a manufacturer and exporter of mild steel ERW black and galvanized pipes, hollow steel pipe, cold rolled steel (CR) strips. The company has been in business for over 2 decades.

2) What is the industry overview of Vibhor Steel?
India is the second largest steel producer in the world with an installed capacity of 154.1 MT in FY22. It is also the second-largest consumer of finished steel with a consumption of 120 MT in FY23. The Indian steel sector has been able to grow over the years due to domestic availability of raw materials such as iron ore and cost-effective labour.

3) What is the size of Vibhor Steel IPO?
The IPO is entirely a fresh equity issue of Rs 72 crore with no offer for sale component.

4) What is the price band for Vibhor Steel IPO?
The company has fixed a price band of Rs 141-151 per share for its maiden public offer and investors can bid for a minimum of 99 shares and in multiples thereafter.5) What is the structure of Vibhor Steel IPO?
About 50% of the issue is reserved for qualified institutional buyers, 15% for non-institutional bidders, and 35% for retail investors.

6) How is the financial performance of Vibhor Steel?
In FY23, the company’s revenue from operations increased 36% year-on-year to Rs 1,113 crore and net profit nearly doubled to Rs 21.06 crore. For the six months ended September 2023, revenues stood at Rs 530 crore and profit was at Rs 8.52 crore.

7) What are the objects of Vibhor Steel IPO?
Net proceeds from the public offer are proposed to be utilised for funding of working capital requirements and general corporate purposes.

8) What is the current GMP of Vibhor Steel?
According to market analysts, the current GMP of Vibhor Steel is Rs 130 in the unlisted market.

9) Who are the book running lead managers for Vibhor Steel IPO?
Khambatta Securities is acting as the book running lead manager and Kfin Technologies is the registrar for the IPO.

10) When is the share allotment and listing date of Vibhor Steel IPO?
The share allotment for the IPO will be finalised on February 16 and the listing date is fixed as February 20.

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