Blockbuster Listing: Vibhor Steel Tubes IPO Debuts At 181% Premium; Key Highlights Here

Vibhor Steel Tubes, a leading manufacturer and exporter of mild steel and carbon steel, made a grand entrance into the stock market with its highly anticipated Initial Public Offering (IPO) on Tuesday, February 20.

Investors were in for a treat as the share price of Vibhor Steel Tubes surged to Rs 425 per share on the National Stock Exchange (NSE), marking an extraordinary 181.5 percent increase from its issue price of Rs 151.

Similarly, on the Bombay Stock Exchange (BSE), Vibhor Steel Tubes shares opened at Rs 421 each, boasting a significant uptick of 178.81 percent.

The overwhelming success of Vibhor Steel Tubes IPO can be attributed to its robust financial performance and strong market demand. In the six months ending September 30, 2023, the company reported impressive figures, with revenue standing at Rs 530.51 crore, net profit at Rs 8.52 crore, and EBITDA at Rs 23.69 crore.

During the same period, Vibhor Steel Tubes maintained healthy margins, with a PAT margin of 1.61 percent and an EBITDA margin of 4.47 percent.

Additionally, the company's debt-to-equity ratio stood at 1.83 times, RoCE at 6.97 percent, and RoE at 8.37 percent, reflecting its sound financial health.

The share price was first expected to be between Rs 260 and Rs 280 per share, according to market analysts. However, the actual performance far exceeded these expectations, demonstrating investor confidence in Vibhor Steel Tubes' growth prospects.

During the three-day subscription period of the Vibhor Steel Tubes IPO, investor response was overwhelming. According to data from the Bombay Stock Exchange, the subscription status on the last day was an astounding 298.86 times.

Notably, retail investors exhibited significant interest, with their portion oversubscribed by 188.17 times. The Non-Institutional Investors (NII) portion witnessed an unprecedented over-subscription of 721.34 times, while the Qualified Institutional Buyers (QIB) portion was oversubscribed by 178.73 times. Even the employee portion saw substantial subscriptions, standing at 201.48 times.

The IPO, valued at Rs 72.17 crore, comprised entirely of a fresh issue without any offer-for-sale component. The proceeds from the IPO are earmarked for general corporate purposes and to support the company's working capital requirements.

The promoters of Vibhor Steel Tubes, including M/s Vijay Kaushik HUF, Vibhor Kaushik, Vijay Laxmi Kaushik, and Vijay Kaushik, currently hold 1,32,46,500 equity shares, representing 93.40 percent of the equity share capital of the corporation that was pre-issued, issued, subscribed, and paid up.

The Vibhor Steel Tubes IPO's last recorded Grey Market Premium (GMP) was Rs 140 as of February 20, 2024.

Khambatta Securities Ltd was the sole BRLM for the IPO, while KFin Technologies served as the registrar.

Vibhor Steel Tubes has established itself as a key player in the steel industry, with a long-term agreement for six years with Jindal Pipes. The company operates two manufacturing facilities in Raigad, Maharashtra, and Mahabubnagar, Telangana, along with a warehouse in Haryana's Hisar.