20 Feb , 2024 By : Debdeep Gupta
Bumper Debut, Vibhor Steel Tubes stock lists at 181% premium to the IPO price, Vibhor Steel Tubes IPO, The stock opened at Rs 425 on the NSE and Rs 421 on the BSE against the issue price of Rs 151
Vibhor Steel Tubes made a stellar debut on the bourses, listing at an 181 percent premium over the IPO price on February 20. The stock opened at Rs 425 on the NSE and Rs 421 on the BSE against the issue price of Rs 151. The bumper listing surpassed analysts’ expectations of an 86-92 percent premium.
Ahead of the listing, shares were trading at a 92 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.
The issue had received a strong response from investors, getting subscribed 320 times. High net-worth individuals (HNIs) remained at the forefront, buying 770 times the allotted quota. Retail investors picked up 200 times the portion set aside for them, while the part reserved for qualified institutional buyers was booked 191 times.
The financials
The price band for the Rs 72.17-crore issue, which opened for subscription on February 13 and closed on February 15, was fixed at Rs 141-151 a share. It was entirely a fresh issue of shares. The anchor book opened for a day on February 12 in which the company raised Rs 22 crore from Saint Capital Fund, Chhattisgarh Investments Ltd, and Neomile Growth Fund-Series I.
In the six months ended September 30, 2023, the company's revenue stood at Rs 530.51 crore, net profit at Rs 8.52 crore, and EBITDA at Rs 23.69 crore. In the same period, the PAT margin was at 1.61 percent, the EBITDA margin at 4.47 percent, the debt-to-equity ratio at 1.83 times, RoCE at 6.97 percent, and RoE at 8.37 percent.
Vibhor Steel Tubes is a manufacturer and exporter 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. The company has two manufacturing facilities in Raigad, Maharashtra, and Mahabubnagar, Telangana, and a warehouse in Haryana's Hisar.
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