Vibhor Steel Tubes IPO Fully Booked Within an Hour of Opening
Vibhor Steel Tubes Limited, a leading manufacturer and exporter of mild steel and carbon steel pipes, has opened its Initial Public Offering (IPO) for subscription today. The IPO, valued at ₹72.17 crore, has already received an overwhelming response from investors, with the entire offering being fully booked within just one hour of opening.
The IPO price band for Vibhor Steel Tubes has been set at ₹141 to ₹151 per share. The lot size for investors is 99 shares, and they are allowed to bid for a minimum of 99 shares and in multiples thereof. The IPO has reserved not more than 50% of the shares for qualified institutional buyers (QIB), while 35% has been reserved for non-institutional institutional investors (NIIs) and retail investors each. Additionally, there is an equity share reservation of up to ₹44.55 lakhs for employees.
Vibhor Steel Tubes Limited has been a prominent player in India’s heavy engineering sectors for the last two decades. They specialize in manufacturing and exporting ERW black and galvanized pipes, hollow steel pipe, and CR strips and coils. The company has a long-standing collaboration with Jindal Pipes Limited, with whom they have been producing and supplying completed items under the brand name “Jindal Star” since 2003.
However, the company’s Red-Herring Prospectus highlights certain key risks that investors should take note of. These risks include the dependence on Jindal Pipes Limited for a significant portion of its revenue, long-term contracts with Steel Authority of India Limited and JSW Steel Limited, restrictive covenants attached to borrowings, occasional delays in paying statutory dues, and the requirement of significant working capital.
Furthermore, the IPO also brings to attention the potential impacts of disruptions in the supply of raw materials or a rise in costs, as well as the fact that a significant portion of the company’s assets are in the form of trade receivables and inventory. These factors could significantly influence the company’s future performance, as well as the decisions of potential investors.
The Vibhor Steel Tubes IPO is open for subscription from today, February 13, and will close on February 15. It remains to be seen how the market will respond to this highly anticipated offering and if it will match the enthusiastic response it has already received within its first hour of opening.
Analyst comment
Positive news: Vibhor Steel Tubes IPO fully booked within an hour of opening, receiving overwhelming response from investors.
Analyst’s view: The market is likely to respond positively to the Vibhor Steel Tubes IPO, given the strong investor interest shown within the first hour of opening. However, potential risks highlighted in the company’s prospectus should be considered, and the market’s response for the remaining subscription period will determine the overall success of the offering.
