Vibhor Steel Tubes Debuts At A Premium Of 181 Per Cent Over Issue Price

Last week, the company’s initial public offering (IPO) received subscriptions of about 300 times on the last day of the auction, led primarily by participation from institutional investors

As of session end, the firms’ shares stood at Rs 442 on the BSE, and climbed to Rs 446.25 apiece on the NSE.  ( Image Source :Getty )

Vibhor Steel Tubes made a strong debut in the stock market on Tuesday, marking a premium of 181 per cent over the issue price. The company’s shares listed on the NSE at Rs 425 apiece, representing a gain of 181.46 per cent on the issue price of Rs 151. 

On the BSE, the firm’s stock opened at Rs 421, rallying ahead by 178.81 per cent from the issue price, reported PTI. The company’s stock further climbed 192.72 per cdnt to touch Rs 442 during the session on the stock market. The firm’s market valuation stood at Rs 838.14 crore on the BSE in the morning trade. 

Last week, the company’s initial public offering (IPO) received subscriptions of about 300 times on the last day of the auction, led primarily by participation from institutional investors. The Haryana-based company’s issue included a fresh offering of equity shares worth Rs 10 per piece, coming up to an issue size of Rs 72.17 crore via the book-building route. 

As of session end, the firms’ shares stood at Rs 442 on the BSE, and climbed to Rs 446.25 apiece on the NSE. 

The firm intends to utilise the issue’s proceeds towards capital requirements and general corporate purposes. Established in 2003, Vibhor Steel Tubes Ltd (VSTL) manufactures high-quality steel tubes and pipes used in several heavy engineering industries in the country. It also produces and exports mild steel and carbon steel ERW (electric resistance welded) black and galvanised pipes, hallow steel pipe, and cold rolled steel (CR) strips and coils.

The company posted a net profit of Rs 8.52 crore for the first six months during the current fiscal year. The total income of the firm stood at Rs 530.51 crore for the April-September period in the 2023-24 fiscal year. The firm operates from two manufacturing facilities based at Sukheli in Maharashtra and Mehboob Nagar in Telangana.