On February 20, Vibhor Steel Tubes made an incredible market debut, sending company shares skyrocketing as soon as trading began. The stock marked an amazing turning point in its career as a publicly traded company when it unexpectedly launched at a startling 181% premium over its initial public offering (IPO) price.
Investors saw shares of Vibhor Steel Tubes open at Rs 425 on the National Stock Exchange (NSE) as the trading day got underway, which is a substantial increase over the IPO price of Rs 151 per share. Similarly, the stock opened at Rs 421 on the Bombay Stock Exchange (BSE). Vibhor Steel Tubes’ market capitalization increased to an astounding Rs 798.32 crore as a result of this jump, indicating the strong investor interest and trust in the company’s future.
Investor interest in Vibhor Steel Tubes’ initial public offering (IPO), which was held from February 13 to February 15, was high. Retail investors were given the chance to join with a minimum investment of Rs 14,949, with a price band set between Rs 141 and Rs 151 per share and a minimum lot size of 99 shares. A total of 4,779,444 shares were made available at the IPO, with some shares reserved for particular investor types.
The IPO received many more subscriptions than anticipated, demonstrating its tremendous response. The initial public offering (IPO) saw a startling 298.86 times oversubscription, with 1,07,36,25,300 bids placed against the 35,92,445 shares that were offered. Notably, qualified institutional buyers (QIBs) and retail investors bid for 188.17 and 178.73 times, respectively, their allotted parts, while non-institutional investors (NIIs) oversubscribed their quota by 721.33 times.
Vibhor Steel Tubes raised Rs 72.17 crore through the successful IPO, which improved its financial condition even further. The company had already raised Rs 21.51 crore from anchor investors, which included well-known organizations like Saint Capital Fund, Chhattisgarh Investments Ltd., and Neomile Growth Fund-Series I, before the IPO.
Vibhor Steel Tubes highlighted its commitment to sustainable growth and expansion by outlining how it plans to use the IPO proceeds to support general company activities and meet its working capital requirements. Vibhor Steel Tubes Limited is based in Haryana and serves several heavy engineering industries in India by producing, supplying, and exporting steel pipes and tubes. The company’s promoters had a sizable 98.24% ownership prior to the IPO, demonstrating their vested interest and faith in the company’s future direction.
Vibhor Steel Tubes’ outstanding stock market debut not only highlights the company’s solid foundation and promising market, but it also demonstrates investor confidence in the company’s future growth. Vibhor Steel Tubes is ready to set off on an exciting journey of value creation and market leadership in the steel sector, having created a solid basis through its initial public offering (IPO).