Stellar Listing: Vibhor Steel Tubes Lists at 181% premium at Rs 425 per share on NSE

Vibhor Steel Tubes Limited has become a prominent player in the manufacturing, export, and supply of steel pipes and tubes for various heavy engineering industries in India, debuted on the Indian stock market today.

The company’s stock opened at Rs 425 per share, indicating a significant premium of about 181% on NSE as compared to the final issue price of Rs 151 per share on the NSE. The market capitalisation of the company stands at Rs 798 crore on the BSE. On the other hand, it opened at Rs 421 per share on the BSE, representing a 178.81% premium compared to its final issue price.

IPO Proceeds:

The company proposes to utilise the net proceeds from the fresh issue for funding the following objectives:

• To meet working capital requirement
• To meet issue expenses
• General corporate purposes.

Company profile:

Established in 2003, Vibhor Steel Tubes Limited has become a prominent player in the manufacturing, export, and supply of steel pipes and tubes for various heavy engineering industries in India. With a commitment to quality, the company boasts a diverse product portfolio catering to a range of applications. This includes Electric Resistance Welded (ERW) pipes designed for use in water transport, oil, gas, and other non-toxic supplies. Additionally, Vibhor Steel Tubes Limited produces hot-dipped galvanized pipes tailored for applications in agriculture and infrastructure. The company’s offering extends to hollow section pipes available in square and rectangular forms, as well as primer-painted pipes. In addressing safety concerns, the company manufactures crash barriers suitable for railways, highways, and roads. Operating from two manufacturing facilities located in Raigad, Maharashtra, and Mahabubnagar, Telangana, and complemented by a strategically positioned warehouse in Hisar, Haryana, Vibhor Steel Tubes Limited stands as a reliable provider in the steel pipes and tubes industry.

Subscription details:

On February 15, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 320.05 times. The public issue received remarkable interest, with the retail category being subscribed 201.52 times, while the QIB and NII categories reached a subscription rate of 191.41 and 772.49 times respectively.

The IPO price band was between Rs 141 and Rs 151, with a face value of Rs 10 per share and a lot size of 99 shares. The total size of the company’s IPO was Rs 72.17 crore, and the final share issue price was fixed at Rs 151 each.

Financial Performance:

Conclusion:

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 181% on the listing day alone and can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.