Vibhor Steel IPO has been seeing a robust response from investors with an overall subscription of 61 times just on Wednesday, the second day of the bidding process. The issue, which is completely a fresh equity issue of Rs 72 crore, closes tomorrow.

The strong demand was led by non-institutional investors, whose category was subscribed 128 times, followed by retail investors at 64 times. The QIB portion was booked 7 times so far.

Vibhor Steel Tubes GMP

The company’s shares are trading with a GMP of Rs 120, unchanged from the previous day. This indicates a listing gain of around 80%.

Vibhor Steel Tubes price band

The IPO is priced in the range of Rs 141-151 apiece. About 50% of the issue is reserved for qualified institutional buyers, 15% for non-institutional bidders, and 35% for retail investors.
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Vibhor Steel Tubes IPO review

Analysts advised investors to subscribe to the issue over attractive pricing and optimistic business outlook.

“The company focus will remain on improving operating efficiencies through technology enhancements which will strengthen the company’s competitive position. Investors looking to invest, can invest in this IPO with a medium to long term perspective,” said Master Capital.

Other details

Incorporated in 2003, Vibhor Steel was converted inot a public ltd company in 2023. The company specializes in the manufacturing of mild steel/carbon steel ERW Black and Galvanized Pipes, hollow steel pipe, cold rolled steel (CR) strips.

It is a two-decade-old manufacturer, exporter and supplier of steel pipes and tubes to various heavy engineering industries in India.

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 had a long-term business arrangement with Jindal Pipes since 2003 and derives major orders from the company. Under the agreement, Jindal will provide orders with a minimum quantity of 1,00,000 MT per annum.

Net proceeds from the public offer are proposed to be utilised for funding working capital requirements and general corporate purposes.

In FY23, the company’s revenue from operations increased 36% year-on-year to Rs 1,113 crore and net profit nearly doubled to Rs 21.06 crore. For the six months ended September 2023, revenues stood at Rs 530 crore and profit was at Rs 8.52 crore.

Khambatta Securities is acting as the book-running lead manager and Kfin Technologies is the registrar for the IPO.

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