The IPO of Vibhor Steel has become the most subscribed this year with still hours left till the close. The issue was booked by a massive 298.8 times, where the non-institutional investors category was subscribed nearly 721 times. The retail investors portion was booked 188 times and the QIB part received 178 times subscription.

The issue, which is completely a fresh equity issue of Rs 72 crore, closed today.

Vibhor Steel Tubes GMP
The company’s shares are trading with a GMP of Rs 110, marginally lower from the previous day. The current GMP indicates a listing gain of around 72%.

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 int o 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 decades 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 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 of 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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