Dream stock market debut with 182% gains for Vibhor Steel Tubes
It's a good morning for those who have subscribed to initial public offerings of Vibhor Steel Tubes, and were lucky enough to have got the stock allocated against their names, as the company on Tuesday made its dream stock market debut with a bumper 182 per cent premium over its issue price.
ANI
Feb 20, 2024 12:42 IST
New Delhi [India], February 20 (ANI): It's a good morning for those who have subscribed to initial public offerings of Vibhor Steel Tubes, and were lucky enough to have got the stock allocated against their names, as the company on Tuesday made its dream stock market debut with a bumper 182 per cent premium over its issue price.
Last week, Vibhor Steel Tubes' public issue was subscribed nearly 300 times on the final day, driven by overwhelming participation from institutional investors. The initial public offering (IPO) of Haryana-based Vibhor Steel Pipes Limited was fully subscribed within the first 30 minutes of its opening on February 13.
The company's shares on Indian stock exchanges are listed at Rs 425 against its issue price of Rs 151. It rose further to trade at Rs 446.25 at 12.28 pm.
The price band for the issue was fixed at Rs 141-151 per share. A lot size was equal to 99 equity shares.
The company planned to raise approximately Rs 72.17 crore (at upper band) from the offering and aims to be listed with NSE and BSE. Initial public offering (IPO) refers to the process where companies sell their shares to the public to raise equity capital from the investors.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said Vibhor Steel Tubes defied even the most optimistic predictions, recording a phenomenal 182 per cent gain on its listing day.
"This unprecedented performance vastly exceeds the previously anticipated surge, fueled by the company's strong fundamentals and the overwhelming investor response. Boasting a diverse product portfolio, an established distribution network, and consistent financial performance, Vibhor Steel Tubes possesses a solid foundation for growth," Nyati said.
"Despite the strong listing, the high valuation could pose potential risks in the long term. Thus, this listing is the right time for investors to exit their holdings; however, those who still want to hold are suggested to keep stoploss at around 380," she added.
Vibhor Steel Pipes Limited intended to utilise the proceeds from the IPO for working capital requirements and general corporate purposes. (ANI)
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