Impressive Premiere: Vibhor Steel Tubes Stock Debuts with a 181% Premium over IPO Price

Vibhor Steel

Vibhor Steel Tubes made an impressive debut on the stock exchanges, opening at Rs 425 on the NSE and Rs 421 on the BSE, marking a 181 percent premium over the IPO price of Rs 151 on February 20. This bumper listing exceeded analysts’ expectations, who had anticipated an 86-92 percent premium. Prior to the listing, shares were trading at a 92 percent premium in the grey market, an unofficial trading platform where shares are bought and sold before their official listing. Investors often monitor the grey market premium (GMP) to gauge the potential listing price.

The offering garnered significant interest from investors, with a subscription rate of 320 times. High net-worth individuals (HNIs) took the lead, oversubscribing their allotted quota by 770 times. Retail investors subscribed to 200 times the portion designated for them, while qualified institutional buyers booked 191 times their allocation.

The price band for the Rs 72.17-crore issue, open for subscription from February 13 to February 15, was set at Rs 141-151 per share. This consisted entirely of fresh shares. An anchor book, open for a day on February 12, saw the company raise Rs 22 crore from Saint Capital Fund, Chhattisgarh Investments Ltd, and Neomile Growth Fund-Series I.

For the six months ending September 30, 2023, the company reported revenue of Rs 530.51 crore, net profit of Rs 8.52 crore, and EBITDA of Rs 23.69 crore. During the same period, the PAT margin was 1.61 percent, EBITDA margin stood at 4.47 percent, debt-to-equity ratio was 1.83 times, RoCE at 6.97 percent, and RoE at 8.37 percent.

Vibhor Steel Tubes specializes in the production and export of mild steel/carbon steel ERW black and galvanized pipes, hollow steel pipes, and cold-rolled steel strips/coils. The company holds a six-year-long agreement with Jindal Pipes. With manufacturing facilities situated in Raigad, Maharashtra, and Mahabubnagar, Telangana, along with a warehouse located in Hisar, Haryana, the company maintains a robust operational presence.

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