“Vibhor Steel Tubes IPO: Stock Opens at Rs 425 on NSE and Rs 421 on BSE, Surging Past Issue Price of Rs 151”
“Vibhor Steel Tubes Makes Stellar Debut with 181% Premium Over IPO Price
Vibhor Steel Tubes experienced a remarkable debut on the stock exchanges, listing at a staggering 181% premium over the IPO price on February 20th. The stock opened at Rs 425 on the NSE and Rs 421 on the BSE, surpassing the issue price of Rs 151.
The bumper listing exceeded analysts’ expectations, who had predicted an 86-92% premium. Prior to the listing, shares were trading at a 92% premium in the grey market, an unofficial platform where shares trade before IPO allotment and continue until listing. Investors often track the grey market premium (GMP) to gauge the potential listing price.
The IPO received an overwhelming response from investors, with a subscription of 320 times. High net-worth individuals (HNIs) led the way, subscribing 770 times the allotted quota. Retail investors also showed strong interest, subscribing 200 times their portion, while qualified institutional buyers booked 191 times their allotted portion.”
The financials
The IPO of Vibhor Steel Tubes, valued at Rs 72.17 crore, commenced its subscription on February 13 and concluded on February 15. Priced in the range of Rs 141-151 per share, the offering comprised entirely of fresh shares.
Prior to the IPO opening, the anchor book was launched on February 12, during which the company secured Rs 22 crore from prominent investors including Saint Capital Fund, Chhattisgarh Investments Ltd, and Neomile Growth Fund-Series I.
In the six months ended September 30, 2023, Vibhor Steel Tubes reported a revenue of Rs 530.51 crore, a net profit of Rs 8.52 crore, and an EBITDA of Rs 23.69 crore. During the same period, the company achieved a PAT margin of 1.61 percent, an EBITDA margin of 4.47 percent, a debt-to-equity ratio of 1.83 times, a Return on Capital Employed (RoCE) of 6.97 percent, and a Return on Equity (RoE) of 8.37 percent.
Vibhor Steel Tubes specializes in the manufacturing and exporting of mild steel/carbon steel ERW black and galvanized pipes, hollow steel pipes, and cold-rolled steel strips/coils. The company has a long-term agreement for six years with Jindal Pipes. With manufacturing facilities located in Raigad, Maharashtra, and Mahabubnagar, Telangana, along with a warehouse in Haryana’s Hisar, Vibhor Steel Tubes has established a strong operational footprint.