Vibhor Steel Tubes IPO Sees Overwhelming Subscription, GMP Indicates Strong Investor Confidence

Vibhor Steel Tubes Ltd’s IPO was a significant event in the market, marked by a substantial interest from investors across various segments. The IPO was open for subscription from February 13 to February 15, 2024, with the price band set between ₹141 to ₹151 per equity share. The company aimed to raise ₹72.17 crore through the issuance of fresh shares​​​​.

The IPO saw an overwhelming response, being fully subscribed on the first day of bidding itself, driven predominantly by retail and non-institutional investors (NIIs). The subscription status reached 27.63 times as per BSE data, with the retail investors’ portion subscribed 32.51 times, and the NIIs’ portion 48.33 times. The Qualified Institutional Buyers (QIB) segment was subscribed 3.56 times, while the employee portion reached a subscription rate of 27.45 times​​.

The company’s GMP (Grey Market Premium) was reported at ₹132, indicating strong investor confidence and a potential for a high listing price above the IPO price. The expected listing price was anticipated to be ₹271 apiece, which is significantly higher than the IPO price of ₹151​​​​.

Vibhor Steel Tubes Ltd is engaged in the manufacturing, export, and supply of steel pipes and tubes to various heavy engineering industries. With two manufacturing facilities in Maharashtra and Telangana and a warehouse in Hisar, Haryana, the company has shown growth in revenue and profit after tax (PAT) in the recent financial years. The proceeds from the IPO are intended for funding the company’s working capital requirements and for general corporate purposes​​.

For those looking into the details of Vibhor Steel Tubes Ltd’s IPO, it’s essential to consider the company’s financial performance, industry positioning, and the purpose of the IPO funds. Such an analysis will offer insights into the company’s future prospects and the potential returns on investment.