Vibhor Steel Tubes IPO Sees Overwhelming Subscription, Market Observers Bullish on Listing Gains
Mumbai, February 15, 2024 – The highly anticipated initial public offering (IPO) of Vibhor Steel Tubes Ltd has generated considerable buzz in the investor community, with the bidding process set to conclude today. The IPO has witnessed an overwhelming response from primary market investors, leading to speculation of significant listing gains.
Strong Subscriber Interest Amid Bullish Market Sentiment
As per the latest subscription status, the public issue of Vibhor Steel Tubes has been subscribed a staggering 101.42 times, with the retail portion receiving 90.28 times subscription, and the employees' portion 78.93 times. Notably, the Non-Institutional Investors (NII) segment saw an impressive 252.20 times subscription, and the Qualified Institutional Buyers (QIB) segment was subscribed 8.52 times. This heightened interest continued on the third day of bidding, with overall subscriptions reaching 167.52 times.
Grey Market Signals Robust Listing Performance
Stock market analysts have highlighted the strong performance of Vibhor Steel Tubes in the grey market, with the Grey Market Premium (GMP) pegged at ₹122 today. This suggests an anticipated listing premium of over 80 percent, attributed to robust investor sentiment and a favorable secondary market mood following a significant rally on Wednesday.
Expert Opinions Favor 'Subscribe for Listing Gain'
Market experts like Arun Kejriwal, Founder of Kejriwal Research and Investment Services, and Rajan Shinde, Research Analyst at Mehta Equities, endorse the IPO for its attractive valuations and potential for listing gains. Noting the issue's competitive PE multiple and the company's strong financial growth, analysts give it a 'subscribe' rating primarily for the listing gains.
Vibhor Steel Tubes is touted for its strategic advantages, including a longstanding association with Jindal Pipes and strategic location near ports, enhancing its export business prospects. The company's financial performance in FY 2022 and FY 2023 has been commendable, with significant growth in revenues and net profits, further buoying investor confidence.
Analysts emphasize the discrepancy in valuation compared to its listed peers, suggesting substantial room for listing gains, which makes the IPO a lucrative option for investors aiming for short-term returns.
Disclaimer: Opinions and recommendations are those of individual analysts and do not represent those of Mint. Investors are advised to conduct their own research or consult certified experts before making investment decisions.
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Published on February 15, 2024, at 09:15 AM IST
Analyst comment
Positive news. The Vibhor Steel Tubes IPO has seen overwhelming subscription and market observers are bullish on its listing gains. Analysts predict a strong listing performance, with a premium of over 80%, due to investor sentiment and a favorable market mood. Experts recommend subscribing for short-term gains, highlighting the company’s strategic advantages and commendable financial performance. The IPO presents a lucrative option for investors looking for short-term returns.
