Vibhor Steel Tubes makes dream debut on exchanges, lists at 180% premium over IPO price

Delhi-based Vibhor Steel Tubes Ltd made a stellar debut on stock exchanges on Tuesday, February 20. Shares of the steel tubes manufacturer and exporter are listed at a premium of around 180% on exchanges, making it one of the best IPO listings of 2024 so far.

Vibhor Steel Tubes Ltd (VSTL) shares are listed at ₹425 per piece on the National Stock Exchange (NSE) against its issue price of ₹151 per share. More than 19.93 lakh equity shares traded in the first 30 minutes of trade, amounting to a total value of ₹88.19 crore.

The company’s market capitalisation stood at ₹627 crore as the stock gained a further 5% from the listing price to hit an intraday high of ₹446.25 apiece.

The stock moved between a low of ₹421 per share and a high of ₹442 per share. It was up 4.99% at ₹442 at 10:28 AM.

Around 93,000 shares were traded, while the total turnover was around ₹4.18 crore. Its market capitalisation stood at ₹838.14 crore on BSE.

Vibhor Steel Tubes Ltd IPO details

Vibhor Steel Tubes Ltd launched an initial public offer on February 13 to raise ₹72.17 crore from public shareholders. The public offer, which was a fresh issue of 35,92,445 equity shares and without any offer for sale component, closed on February 15. The issue was priced at ₹141 to ₹151 per piece at a face value of ₹10. The minimum lot size was 99, while the minimum investment was ₹13,959.

The company will use the proceeds from the public issue for general corporate purposes and working capital requirements.

The public offer of Vibhor Steel Tubes saw strong demand from investors as the IPO was subscribed nearly 299 times of shares on offer at the close of the offer. The IPO garnered bids for 107.36 crore shares as against the total issue size of 35.93 lakh shares.

Vibhor Steel Tubes IPO was fully subscribed on the first day of application on February 13. On the final day, the qualified institutional buyers (QIB) portion was subscribed 178.73 times. The QIB category received applications for 18,18,47,952 equity shares against 10,17,441 equity shares reserved for them.

The non institutional investors (NII) category was subscribed 721 times as applications for 55,03,95,252 equity shares were received against the portion size of 7,63,023 shares.

Retail individual investors (RIIs) category received 33,50,17,089 bids against 17,80,386 equity shares, translating into a subscription of 188.17 times.

The employee portion was subscribed 201 times with applications for 63,65,700 equity shares against 31,595 equity shares on offer.

Vibhor Steel Tubes raised ₹21.5 crore from anchor investors ahead of the public issue.

The company's promoters held an aggregate of 1,32,46,500 equity shares, aggregating to 93.40% of the pre-issue issued, subscribed and paid-up Equity Share capital.

About Vibhor Steel Tubes

Vibhor Steel Tubes manufactures, exports, and supplies steel pipes and tubes to various heavy industries. Its customers include GBM Building Equipments SRL, Jindal Pipes, BLA Udyog and Mick D.O.O, Sudferrum GMBH.

The company was originally incorporated as ‘Vibhor Steel Tubes Private Limited’ in 2003. The company produces products such as ERW pipes, hot-dipped galvanised pipes, hollow section pipes, painted pipes and crash barriers.

Steel pipes and tubes can be used for many purposes, such as steel pipes for frames and shafts, steel pipes for bicycle frames, steel pipes for furniture, CDW pipes for shockers, steel pipes for various structural purposes, steel pipes for various engineering purposes etc.

The company has been working with Jindal Pipes Limited since 2003. It produces and supplies finished goods for Jindal Pipes Ltd. It has a long-term agreement with Jindal Group for six years for a minimum quantity of 1,00,000 MT per annum.

To know more about IPOs listing, schedule and upcoming IPOs, click here