Vibhor Steel Tubes IPO

Association with Jindal Pipes Limited. : The Company benefits from a long-standing relationship with JPL. It started with Job work activity which has now translated into full time production of pipes (0.5 inch to 12 inch) for JPL under brand “Jindal Star”

Strategic Location : Their manufacturing units are located in Raigad, Maharashtra and Telangana so that location enables ease of logistics, power, water supply and raw materials for operations.

Experienced Promoters : Company's two promoters are qualified professionals with an individual experience of more than 4 & 2 decades respectively in the Steel Pipes & Tubes industry and have been instrumental in driving growth since inception.

Interntional Accredititons: Company follows international standard manufacturing practises and their manufacturing facility benefits from the quality benchmarking certifications such as (i) ISO 9001:2015 and (ii) IS 1239:2004, IS 3601:2006, IS 3589:2001 from Bureau of Indian Standards. Such practices and accreditations, coupled with our technical capabilities and know-how enable us to manufacture products for both domestic and international customers.

Negative Cash Flows: Company had reported certain negative cash flows from financing and operating activities in previous years. Steel business is working capital intensive. If they experience insufficient cash flows to meet required payments on working capital requirements, there may be an adverse effect on business.

Long Term Agreements: Company has entered into long-term agreements with Jindal Pipes Limited for sale, any disruption in agreement can impact revenues.

High Inventories and Trade Receivables: Our business is working capital intensive and hence, Trade Receivables and Inventories form substantial part of our current assets and net worth. For the fiscal year 2023, 2022 and 2021, the trade receivable and inventories on an aggregate basis constitutes Rs. 17,474.67 Lakhs, Rs. 14,602.24 Lakhs and Rs. 9,033.93 Lakhs, which is 59.51%, 58.75% & 52.24% respectively of total current assets respectively.