Vibhor Steel Tubes IPO gets robust response: Issue subscribed nearly 300 times, check key details

Vibhor Steel Tubes initial public offering (IPO) closed with a stellar response from investors as the maiden public issue was subscribed 299 times on the third and final day. The Vibhor Steel Tubes IPO was open for subscription from February 13 to February 15.

The company received bids for a total of 107.36 crore shares compared to 35.93 lakh shares on offer.

The Vibhor Steel Tubes IPO price band was fixed at ₹141 to ₹151 per share at a face value of ₹10 each. The steel pipe maker aims to raise ₹72.17 crore through the public issue.

Vibhor Steel Tubes IPO: Issue size, lot size and minimum investment

The IPO comprises only fresh issue of shares and no offer for sale (OFS) component. M/s Vijay Kaushik HUF, Vijay Laxmi Kaushik, Vibhor Kaushik, and Vijay Kaushik are the promoters of the company.

The proceeds from Vibhor Steel Limited IPO will be used by the company to meet its working capital needs and other working capital requirements.

After the subscription period, Vibhor Steel Tubes IPO allotment status is expected to be finalised on February 16. Shares of Vibhor Steel Tubes are expected to list on the stock exchanges, NSE and BSE, on February 20.

The company has appointed KFIN Technologies Ltd as the registrar and Khambatta Securities Ltd as the lone book-running and lead manager for the public issue.

Investors could bid for a minimum of 99 shares, aggregating to ₹14,949 and in multiple thereof. The maximum subscription for Vibhor Steel Limited's IPO is capped at ₹2 lakh for retail investors whereas, for eligible employees, this ceiling is ₹5 lakh.

Vibhor Steel Tubes IPO subscription opened with a bumper response on day 1. It received an overwhelming response from retail and non-institutional investors (NIIs), going fully booked in just an hour of opening.

At the end of the application window for the public issue, Vibhor Steel Tubes received bids for 18,18,47,952 shares compared to 10,17,441 shares reserved for the qualified institutional buyer (QIB) segment, marking a 178.73 times oversubscription. The non-institutional investor (NII) portion subscribed 721 times with bids for 55,03,91,094 shares compared to 7,63,023 shares on offer.

Retail Individual Investors (RII) submitted applications for 33,50,18,772 shares as against 17,80,386 shares allocated for the segment, making 188.17 times oversubscription.

Ahead of the listing, Vibhor Steel Tubes raised ₹ 21,51,60,957 through an anchor investment round which saw participation from Saint Capital Fund, Chhattisgarh Investments Limited and Neomile Growth Fund- Series I

About Vibhor Steel Tubes

Incorporated in 2003, Vibhor Steel Tubes manufactures, exports and supplies steel pipes and tubes to various heavy industries in the country. The company’s product portfolio includes hollow section and paint pipes, hot-dipped galvanised pipes, and Electrical Resistance Welding (ERW).

Vibhor Steel Tubes Limited's clientele includes companies like Jindal Pipes, GBM Building Equipments SRL, BLA Udyog, Mick D.O.O, Sudferrum GMBH & CO.KG, and Om Sairam Steels and Alloys.

Vibhor Steel Tubes Ltd has reported steady growth in revenue and profit in the last three financial years. From ₹510 crore in FY21, the company's revenue shot up to ₹817 crore in FY22 and ₹1,113 crore in FY23.

In the second quarter of the current financial year, Vibhor Steel Tubes reported ₹530 crore revenue and ₹8.5 crore net profit. The steel pipe maker's profit has soared from ₹60 lakh in FY21 to ₹21 crore in FY23.