Vibhor Steel Tubes IPO receives stellar response from investors; should you subscribe?
₹72 crore initial public offering (IPO) of Vibhor Steel Tubes received a remarkable response from investors on its first day of bidding, with subscription reaching 27.63 times. Opened on February 13, the bidding attracted bids for 9.92 crore shares against the available 35.92 lakh shares. The IPO will remain open until February 15.
As of noon on the second day, the IPO was subscribed 61.48 times, according to Chittorgarh. The price band for the offer has been fixed at ₹141–151 per equity share, with a face value of ₹10 each. Retail investors have the opportunity to submit bids for up to 13 lots, with each lot containing 99 shares.
At the upper end of the IPO price band of ₹151, retail investors are required to make a minimum investment of ₹14,949 per lot. Also Read: 12 Nifty 100 stocks delivered multibagger returns since last Valentine's Day; check full list The offering consists entirely of fresh shares, totaling 44.55 lakh, amounting to ₹72.17 crore. These shares will be listed on both the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
Vibhor Steel Tubes is a manufacturer and exporter of mild steel, carbon steel, ERW black and galvanised pipes, hollow steel pipes, and cold-rolled steel (CR) strips and coils. Since 2003, the company has been collaborating with Jindal Pipes Limited, manufacturing and supplying finished goods under the brand name "Jindal Star." It has recently renewed its agreement with Jindal Pipes for six years, ensuring a minimum annual order of 1 lakh MT with a 2% discount on the gross sale price. This minimum quantity will fill the majority capacity of Units I and II of the company.
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