Vibhor Steel Tubes IPO Basis of Allotment

THIS IS A PUBLIC ANNOUNCEMENT FOR INFORMATION PURPOSES ONLY AND IS NOT A PROSPECTUS ANNOUNCEMENT AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO ACQUIRE. PURCHASE OR SUBSCRIBE TO SECURITIES. NOT FOR RELEASE. PUBLICATION OR DISTRIBUTION DIRECTLY OR INDIRECTLY. OUTSIDE INDIA. Initial public otter of equity shares on the main Board of BSE Limited ("BSE') and National Stock Exchange of India Limited (' NSE" and together with BSE. the "Stock Exchanges") in compliance with Chapter II of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations. 2018. as amended ('SE8IICOR Regulations')

	VIBHOR STEEL TUBES LIMITED
Corporate Identity Number (CIN): U27109HR2003PIC035091

Our Company was originally incorporated as Vibhor Steel Tubes Private Limited' a private limited company under the Companies Act, 1956 at, pursuant to a certificate of incorporation dated April 16,2003 issued by the Registrar of Companies, National Capital Territory of Delhi and Haryana. Thereafter, our Company was converted from private to public company, pursuant to a special resolution passed by the shareholders of our Company on June 14.2023 and a fresh certificate of incorporation consequent to change of name was issued by the Registrar of Companies, Delhi (*RoC*) on July 07.2023. For further details on the change in the name and the registered office of our Company, see "History and Certain Corporate Matters" beginning on page 211 of the Prospectus dated February 16.2024 ("Prospectus").

Our Company has filed the Prospectus dated February 16,2024 with the RoC. and the Equity Shares are proposed to be listed on the National Stock Exchange of India Limited ("NSE") and BSE Limited ("BSE") and trading is expected to commence on February 20.2024.

Investors may note the following: Pursuant to SEBI circular no. SEBI. HO'CFD/TPDI. CIR.'P.-'2023/140 dated August 9,2023, the reduction of timeline for listing of equity shares in public issue from existing 6 working days ("T+6 days") to 3 working days ("T+3 days") has been made applicatipon mandatory on or after December 1.2023. The Company has completed the requisite formalities such that the commencement of trading of Equity Shares on the Stock Exchanges shall be with effect from February 20.2024. The indicative timelines mentioned in the section titled "Terms of the Issue - Bid/lssue Programme" on page 399 of the RHP and on page 399 of the Prospectus stands updated as below:

All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

INITIAL PUBLIC OFFERING OF UPTO 47,79.443 EQUITY SHARES OF FACE VALUE OF Rs. 10/- EACH ("EQUITY SHARES ') OF OUR COMPANY FOR CASH AT A PRICE OF Rs. 151 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 141 PER EQUITY SHARE) ("OFFER PRICE") AGGREGATING UPTO Rs. 7,216.96 LAKHS (THE "OFFER") THROUGH A FRESH ISSUE OF EQUITY SHARES. THIS OFFER INCLUDES A RESERVATION OF UP TO 29,503 EQUITY SHARES (CONSTITUTING UP TO 0.16% OF THE POST-ISSUE PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY) AGGREGATING UP TO Rs. 44.55 LAKHS FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (AS DEFINED HEREINAFTER) (THE "EMPLOYEE RESERVATION PORTION"). THE ISSUE LESS THE EMPLOYEE RESERVATION PORTION IS HEREINAFTER REFERRED TO AS THE "NET ISSUE". THE ISSUE AND THE NET ISSUE WILL CONSTITUTE 25.20% AND 25.05% OF OUR POST-OFFER PAID-UP EQUITY SHARE CAPITAL. RESPECTIVELY.

1) Concentration risk: We are dependent on, and derive a substantial portion of our revenue from, a single customer, Jindal Pipes Limited. In the six months period ended September 30, 2023 and in Fiscal 2023, 2022 and 2021, Jindal Pipes Limited accounted for 88.75%, 92.66%, 90.38% & 88.92% respectively, of our revenue from operations. Cancellation by Jindal Pipes Limited or delay or reduction in their orders could have a material adverse effect on our business, results of operations and financial condition.

2) State Concentration risk: Our business is largely concentrated in two states ("States") and i.e. Maharashtra and Telangana. Geographical revenue distribution from these two states, In the six months period ended September 30,2023 and in Fiscal 2023,2022 & 2021, revenue contributed from these two states accounted for 96.19%, 94.73%, 93.79% & 93.69% respectively, of total revenue from operations. Any such adverse development affecting continuing operations at our manufacturing facilities could result in significant loss due to an inability to meet customer contracts and production schedules, which could materially affect our business reputation within the industry.

3) Disruption in the supply of raw materials: We have entered into a Memorandum of Understanding (MoUs) dated April 06, 2023 & July 24, 2023 with Steel Authority of India Limited and JSW Steel Limited ("Raw Material Suppliers"), In the six months period ended September 30, 2023 and in Fiscal 2023, 2022 & 2021, raw material procured from these two entities accounted for 97.02%, 87.80%, 88.12% & 88.92% respectively, of total cost of raw material consumed. In case of any disruption in agreement, our cost, revenue & result will affect accordingly.

4) Risk related to setting up a new plant ("Unit III") & Capital expenditure: In

November 2023, our Company has acquired a land for new facility i.e. Unit III in Orissa. The cost of the land was paid by the Company through internal accruals. Unit III will increase our total capacity by 1,20,000 MT to 3,41,000 MT. The Company has started construction of boundary walls of the factory using internal accruals for the construction. The Company has applied the pollution certificate vide the application dated January 05, 2024, currently the application is under process. Further, Company is under the process of filing of application for Factory Licence as on the date of the RHR any adverse impact or delay may effect the future earnings of the Company.

5) Risk related to indebtedness: We have incurred indebtedness which requires significant cash flows to service, and this, together with the conditions and restrictions imposed by our financial arrangements, fluctuations in the interest rates may limit our ability to operate freely and grow our business. As on September 30, 2023, we had total borrowings (including current borrowings, and non-current borrowings) of Rs. 18,667.52 Lakhs

6) Risk Related to Financial Results: Our Company has reported certain negative cash flows from its operating activities, investing activities & financing activities in the six months period ended September 30, 2023 and in Fiscal 2023, 2022 & 2021.

If our Company is not able to generate sufficient cash flows, it may adversely affect our business and financial operations.

7) Risk Related to Independent Directors: Our Three independent directors out of Five independent directors does not have experience related to our business. Accordingly, our business, financial condition, results of operations, cash flows and prospects may be adversely affected by the any negligence accrued in corporate governance due to lack of experience related to the business of our Company by these Independent Directors.

8) Risk Related to Credit Rating: Currently, our borrowing facilities availed from the bank are rated by CARE, credit rating agency. Our long term rating is CARE BBB Positive/ CARE A3+ and shortterm rating is CARE A3 + . The rating was not changed in last 3 years & stub period. Any downgrade in our credit ratings by rating agencies in future may increase our costs of accessing funds in the capital markets and adversely affect our ability to raise additional financing and the interest rates and other commercial terms at which such funding is available.

9) Outstanding Litigation: Our Company, our Promoters/Director and our Group Companies are parties to certain legal proceedings. These legal proceedings are pending at different levels of adjudication before various courts and forums. There can be no assurance that these litigations will be decided in favour of our Company, our Promoters/Director and/or our Group Companies, respectively. If such claims are determined against us, there could be a material adverse effect on our reputation, business, financial condition and results of operations.

10) Delay in payment of statutory dues: There are certain instances of delays in payment of statutory dues with respect to GST, employee provident fund contributions. Any delay in payment of such statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities and in turn may have an adverse impact on our financial condition and cash flows.

11) Intellectual Property Rights: our application is under process for registration under the Trademark Act, 1999 for our logo , hence, we do not enjoy the statutory protection accorded to a registered trademark. Since we have not obtained registration, we may remain vulnerable to infringement and passing- off by third parties and will not be able to enforce any rights against them. We may not be able to detect any unauthorized use or take appropriate and timely steps to enforce or protect our trademarks. We may also need to change our logo which may adversely affect our reputation and business and could require us to incur additional costs.

12) Risk Related to BRLM: The BRLM associated with the Issue has handled 06 public SME issues and one Main Board Issue in the past 3 financial year, out of which none of the issue closed below the Issue price on listing date.

13) Average cost of acquisition of Promoters:

*As certified by Ashok Kumar Goyal & Co., Chartered Accountants vide certificate dated August 28, 2023 & UDIN: 23017644BGQNCD5970.

14) The Weighted average cost of acquisition for all Equity Shares acquired in one year, 18 months and three years preceding the date of the Red Herring

Prospectus is set forth below:

Excludes Equity Shares transferred pursuant to transmission and gifts.

15) Weighted average cost of acquisition, floor price and cap price

*Excludes Equity Shares transferred pursuant to transmission and gifts.

This Issue was made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957. as amended ("SCRR"), read with Regulation 31 of ihe SEBIICDR Regulations. This Issue was made through the Book Building Process in terms of Regulation 6(1) of the SEBl ICOR Regulations, wherein not more than 50% of the Issue was available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs and such portion, the "QIB Portion"). Our Company, in consultation with the BRLM. allocated up to 60% of the QIB Portion to Anchor Investors on a discretionary basis ("Anchor Investor Portion"), of which one- ttwd was reserved lor domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the pnce at which allocation was made to Anchor Investors ("Anchor Investor Allocation Price"), in accordance with SEBI ICDR Regulations, In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares were added to the Net QIB Portion. Further, 5% ol the Net QIB Portion was available for allocation on a proportionate basis 10 Mutual Funds only, and the remainder of the Net QIB Portion was available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the issue Price. However, if the aggregate demand Iron Mutual Funds was less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion were added to the remaining Net QiB Portion for proportionate allocation to QIBs. Further, not less than 15% of the Issue was available for allocation to Non-lnstitutional Bidders out of which (a) one third of such portion was reserved for applicants with application size of more than Rs. 2.00 lakhs and upto 710.00 lakhs; and (b) two third of such portion was reserved for applicants with application size of more than 7 10.00 lakhs, provided that the unsubscribed portion in either of such sub-categories 'was allocated to applicants in the other sub-category of non-institutional investors* and not less than 35% of Issue was available for allocation to Retail Individual Bxlders fRIBs") in accordance with the SEBI ICOR Regulations, subject to valid Bids being received from them at or above Ihe Issue Price Further the Equity Shares will be allocated on a proportionate basis to eligible employees bidding in the Employee Reservation Portion, subject to valid txds received from them at or above the issue Price AH Bidders, (expect Anchor Investors), were mandatorily required to participate in the issue through the Application Supported by Blocked Amount ( ASBA'J process by providing details of their respective ASBA Accounts (as defined hereinafter) Including UPl ID In case of RiBs in which the Bid Amount were blocked by the Self Certified Syndicate Banks fSCSBs") or by the Sponsor Banks under the UPl Mechanism, as the case may be. to the extent of respective Bid Amounts Anchor Investors were permitted to participate in the issue through the ASBA process. For further details, ptease see the chapter titled issue Procedure" beginning on page 408 of the Prospectus.

The bidding for Anchor Investor opened and closed on Monday, February 12. 2024 The Company received Three appkealions from Three Anchor Investors lor 19,87.920 Equity Shares. The Anchor Investor Issue Price was finalized at 7151 per Equity Share. A total of 14.24.907 Equity Shares were atiocated under the Anchor Investor Portion aggregating to 7 21.51,60.957.

The issue received 26,78.131 applications tor 108.12,95.424 Equity Shares resulting in 226.2387 times subscription as disclosed in the Prospectus The details ol the applications received in the Issue from Retail Individual Bidders. Non-lnstitutional Bidders. Eligible Employees and QIBs are as under (before technical rejections);

The Basis of Allotment was finalized in consultation with the Designated Stock Exchange, being NSE on February 16.2024.

A. Allotment to Retail Individual Bidders (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Retail Individual Bidders, who have bid at cut-off or at the Issue Price of Rs.151 per Equity, was finalized m consultation with NSE. This category has been subscribed to the extent of 197 91431 times The total number of Equity Shares Allotted in Retail Individual Bidders category is 16.62.479 Equity Shares to 16.792 successful applicants. The category-wise details of the Basis of Allotment are as under:

Please Note : 1 additional Share shall be allotted to 71 Allottees from amongst 1920 Successful Applicants from the categories 198 - 1287 (i.e. excluding successful applicants from Category 99) in the ratio ol 71:1920

B. Allotment to Non-lnstitutional Bidders (more than Rs. 0.20 million and upto Rs. 1 million) (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-instituiional Bidders (more than Rs. 0.20 million and upto Rs. 1 million), who have txd at the Issue Price of Rs. 151 per Equity Share or above, was finalized in consultation with NSE. This category has been subscribed to the extent of 806.58174 times. The total number of Equity Shares allotted in this category is 2.37.497 Equity Shares to 171 successful applicants The category-wise details of the Basis of Allotment are as under

Please Note : 35 additional Share shall be allotted to 14 Successful Allottees from Sr.no 2 to Sr.no 53 (i.e. excluding successful applicants from Category 1386) in the ratio of 1:1

Please Note: 1 additional Share shall be allotted to 1 Allottees from amongst 14 Successful Allottees from Sl.no 2 to Sl.no 53 (i.e. excluding successful applicants Iron Category 1386) in the ratio of 1:14

C. Allotment to Mon-Institutional Bidders (more than Rs.1 million) (After Technical Rejections) (including ASBA Applications)

The Basis of Allotment to the Non-lnstitutional Bidders (more than Rs.1 million), who have bid at the issue Price of T151 per Equity Share or above, was finalized In consultation with MSE. This category has been subscribed to the extent of 752.70922 tones. The total number of Equity Shares allotted in this category is 4.74.994 Equity Shares to 342 successful applicants. The category-wise details of the Basis of Allotment are as under: (Sample)

Please Note: 2 additional Share shall be allotted to 342 Successful Allottees from an the Categories in the ratio of 1:1

Please Note: 1 additional Share shall be allotted to 298 Allottees from amongst 342 Successful Applicants from all the categories in the ratio of 149 171

D . Allotment to Eligible Employees Bidding in the Employee Reservation Portion (After Rejections) (including ASBA Applications)

The Basis of Allotment to the Eligible Employees Bidding m the Employee Reservation Portion, who have bxf at the issue Price of *151 was finalized in consultation with NSE This category has been subscribed to the extent of 1.05701 times The total number of Equity Shares allotted in this category is 29,503 Equity Shares to 28 successful applicants. Allotment under the Eligible Employee Category have been spirt in 2 categories (i) applications upto 2 Lakhs (n) applications above 2 Lakhs and up to 5 Lakhs. The category-wise details of the Basis of Allotment tor Employee up to 2 Lakhs are as under:

The category-wise details of the Basis of Allotment for Employee above Rs. 2 Lakhs and upto Rs. 5 Lakhs are as under:

E. Allotment to QIBs (After Technical Rejections)

Allotment to OIBs, who have bid at the Issue Price of Rs.151 per Equity Share or above, has been clone on a proportionate basis m consultation with NSE This category has been subscribed to the extent of 186 44507 times of Net GIB portion. As per the SEBI Regulations. Mutual funds available net QIB portion ot 5% of the Equity Shares i.e 47.503 Equity Shares and this portion Is remained under subscribed and allotted to other QIBs Category on a proportionate basis. The total number of Equity Shares allotted in the QIB category is 9.50.063 Equity Shares, which were allotted to 97 successful Applicants.

Includes spilled over of 47,503 Equity Snares from 04B MF Category.

F. Allotment to Anchor Investors (After Technical Rejections)

The Company, in consultation with the BRLM, have allocated 14,24.907 Equity Shares to Three (3) Anchor Investors (through 3 Anchor Investor Application Forms) at an Anchor issue Issue Price at Rs. 151 per Equity Share in accordance with SEBIICOR Regulations. This represents 60% of the QIB portion.

The Board of Directors of our Company at its meeting held on February 16, 2024 has taken on record the basis of allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful applicants, The Allotment Advice Cum Refund Intimation and 'or notices have been dispatched to the address of the investors as registered with the depositories Further, instructions to the SCSBs have been issued for unblocking of funds and transfer to the Public issue Account on February 16.2024 and the payments to non-syndicate brokers have been issued on February 19.2024 in case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Equity Shares allotted to the successful allottees have been uploaded on February 19.2024 for credit into the respective beneficiary accounts sublet to validation of the account details with the depositories concerned. The Company has filed the Listing application with BSE and NSE on February 19.2024. The Company has received the listing and trading approval from BSE & NSE. and trading will commence on February 20. 2024.

Note: All capitalized terms used and not defined herein shall have the respective meanings assigned to them in the Prospectus.

These details of the Allotment made was hosted on the website of Registrar to the Issue. KFIN Technologies Limited at www.Miniech.com. All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First'' Sole applicant. Serial number of the Bid cum Application form number. Bidders DP ID. Client ID. PAN. date of submission of Bid cum Application Form, address of the Bidder, number of Equity Shares bid for. name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

	KFIN TECHNOLOGIES LIMITED
Selenium Tower B. Plot 31-32. financial District. Nanakramguda, Gachibowli. Hyderabad - 500 032. India
Tel: +91 40 67162222 | Email: vibhor.ipo@kfintech.com | Website: www.kfintech.com
Contact Person: Mr. M Murali Krishna | SEBI Registration No: INR000000221 | Validity: Permanent
	For Vibhor Steel Tubes Limited
	On behalf of Board of Directors
	Sd/-
Date: February 16.2024	Mr. Lovkesh.
Place: Hisar	Company Secretary and Compliance Officer
THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF VIBHOR STEEL TUBES LIMITED. VIBHOR STEEL TUBES LIMITED has filed a Prospectus dated February 16. 2024 with the RoC. The Prospectus is made available on the website of the SEBI at www.sebi.gov.in as well as on the website of the BRLM i.e.. Khambatta Securities Limited at www.khambattasecurities.com, the website of the NSE at www.nseindia.com and the website of the BSE at www.bsemdia.com and the website of the Company at www.vstlintSa.com. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, please see the section tilled Risk Factors" beginning on page 28 of the Prospectus The Equity Shares have nol been and wi not be registered under the U S Securities Act of 1933, as amended (the U S Securities Act") or any other applicable law of the United States, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being ottered and sold only (a) to persons in the United States that are qualified institutional buyers' (as defined in Rule 144A under the U.S. Securities Act ('Rule 144A") and referred to in the Prospectus as' U.S. QIBs ' s and. tor the avoidance of doubt, the term U.S. QIBs does not reler to a category of institutional investor defined under applicable Indian regulations and referred to in the Prospectus as QIBs) in transactions exempt from or not subject to the registration requirements of the U.S Securities Act in reliance on Rule 144A and (b) outside the United States in 'offshore transactions' (as defined in Regulation S) in reliance on Regulation S and the applicable laws of the jurisdiction where those offers and sales occur