Shares of Vibhor Steel Tubes marked an impressive market debut on February 20, opening at a substantial premium of 181% to the IPO issue price. The stock commenced trading at Rs 425 on the NSE, far exceeding the IPO price of Rs 151 per share. On the BSE, the opening figure stood at Rs 421, propelling Vibhor Steel Tubes’ market capitalization to Rs 798.32 crore.
The recently concluded IPO, conducted from February 13 to February 15, featured a price band of Rs 141 to Rs 151 per share. With a minimum lot size of 99 shares, retail investors entered the fray with a minimum investment of Rs 14,949. The IPO offered 4,779,444 shares, with 19.88% reserved for qualified institutional buyers and 34.78% for retail investors. Khambatta Securities Limited served as the book running lead manager, and Kfin Technologies Limited acted as the registrar for the IPO.
The overwhelming success of the IPO was evident in the staggering subscription of 298.86 times on the final day. The IPO received a total of 1,07,36,25,300 bids against the available 35,92,445 shares. Notably, non-institutional investors subscribed 721.33 times, while the employee reserved category was oversubscribed by 201.48 times. Retail investors and qualified institutional buyers bid 188.17 times and 178.73 times their allotted portions, respectively.
Vibhor Steel Tubes successfully raised Rs 72.17 crore from the IPO, having previously secured Rs 21.51 crore from anchor investors. The anchor investment round, conducted on February 12, attracted Rs 22 crore from investors such as Saint Capital Fund, Chhattisgarh Investments Ltd, and Neomile Growth Fund-Series I.
The funds raised through the IPO are earmarked for working capital requirements and general corporate purposes, reflecting Vibhor Steel Tubes’ strategic approach to sustaining and expanding its operations. The Haryana-based company, which specializes in manufacturing, exporting, and supplying steel pipes and tubes to heavy engineering industries in India, had its promoters holding a substantial 98.24% stake before the share sale.
This stellar market entry signifies the strong investor confidence in Vibhor Steel Tubes’ business fundamentals and growth prospects, setting a positive tone for the company’s future endeavors.
