Vibhor Steel Tubes makes blockbuster debut; lists at 181% premium over IPO price
The initial public offering (IPO) of Vibhor Steel Tubes made a stellar debut on the stock exchanges on Tuesday, in an otherwise muted broader market. The shares of Vibhor Steel Tubes listed at ₹425, a premium of 181% over the IPO price of ₹151 apiece. On the BSE, the stock opened at ₹421, up 179% over the issue price.
Post listing, Vibhor Steel Tubes shares surged as much as 195% to hit a high of ₹446.25 on the NSE, while it touched a high of ₹442 on the BSE. The market capitalisation of the company rose to ₹838 crore.
The dream debut of Vibhor Steel Tubes was better than Street expectations as the stock was commanding a grey market premium (GMP) of ₹140 apiece in the unofficial market, signaling the listing to be around ₹292 per share, up 92.72%.
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“Vibhor Steel Tubes defied even the most optimistic predictions, recording a phenomenal 181% gain on its listing day, soaring to ₹425 per share compared to its issue price of ₹151. This unprecedented performance vastly exceeds the previously anticipated surge, fueled by the company's strong fundamentals and the overwhelming investor response,” says Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
“Despite the strong listing, the high valuation could pose potential risks in the long term. Thus, this listing is the right time for investors to exit their holdings; however, those who still want to hold are suggested to keep a stop loss at around Nyati 380,” Nyati adds.
The ₹72.17 crore IPO of the Haryana-based Vibhor Steel Tubes had received an overwhelming response from investors, which was a completely fresh issue of equity shares. The company intends to utilise the proceeds from the IPO for working capital requirements and general corporate purposes.
The public issue, having a price band of ₹141-₹151 per share and lot size of 99 shares and thereof, was subscribed 320.05 times, amid broad based response across all three categories. In the retail category, the issue was subscribed 201.52 times, while the portion set aside for qualified institutional buyers (QIB) and non-institutional investors (NII) received 191.41 times and 772.49 times bids, respectively.
Ahead of the IPO, the company raised ₹21.51 crore from the anchor book by allocating 14,24,907 equity shares to the anchor investors.
Founded in 2003, Vibhor Steel Tubes is engaged in exports and supplies steel pipes and tubes to various heavy engineering industries in India. The company has two manufacturing facilities in Raigad, Maharashtra and Mahabubnagar (Dist.), Telangana and a warehouse in Hisar, Haryana.
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