Vibhor Steel Tubes made a stellar debut on Dalal Street, witnessing a remarkable 192% surge in its share price on Tuesday's listing. Opening at ₹442 per share, significantly higher than its issue price of ₹151 per share, the company's market capitalization stands at ₹838 crore, according to BSE data.
The grey market had anticipated an 86% uptick in the stock's listing value, indicating strong investor interest. Analysts had also predicted substantial listing gains, attributing it to the valuation gap with comparable listed peers.
With its IPO garnering overwhelming demand, the ₹72.17 crore offering was oversubscribed 320 times, attracting robust applications from both retail and institutional investors. Prior to the public issue, the company secured ₹21.5 crore in funding from three anchor investors: Saint Capital Fund, Chhatisgarh Investments, and Neomile Growth Fund - Series I.
Amidst volatile market conditions, the performance of 2024's market debuts has been mixed. While the last three listings experienced modest gains, small finance banks witnessed share prices dipping below their issue prices. However, preceding tranches saw favorable listing gains, with Apeejay Surrendra Parks, BLS E-Services, and Nova Agritech delivering positive returns.
Vibhor Steel Tubes, a Haryana-based manufacturer of premium steel tubes and pipes, issued a fresh offering intending to bolster its working capital. The company operates two manufacturing facilities and one warehouse across Maharashtra, Telangana, and Haryana, with a combined capacity of 2,23,160 million tonnes per annum. Its products cater to companies in the western and southern markets, spanning Maharashtra, Gujarat, Madhya Pradesh, Telangana, Karnataka, and Tamil Nadu.
In a bid to expand its footprint, Vibhor Steel Tubes plans to establish a manufacturing unit with a capacity of 1,20,000 MTPA in Orissa, alongside ramping up the capacity of its Telangana facility from 96,000 MTPA to 1,52,000 MTPA.
Furthermore, the company inked an agreement with Jindal Pipes Limited in April 2023, wherein it manufactures and supplies finished goods amounting to 1,00,000 MTPA to Jindal Pipes, marketed under the brand name Jindal Star. Rajan Shinde, a research analyst at Mehta Equities, lauded Vibhor Steel Tubes' association with Jindal Pipes, citing it as a key strength that bolsters long-term visibility, recommending a 'subscribe' rating for the IPO.
.jpg)
