Vibhor Steel Tubes share price nearly triples on listing day. Should you book profits?
Vibhor Steel Tubes made a stunning debut on the exchanges at a premium of 180%, surpassing the already high expectations of market participants.
This stellar performance was fuelled by the company's strong fundamentals and an overwhelming investor response to the IPO, which was subscribed over 300 times.
Boasting a diverse product portfolio, an established distribution network, and consistent financial performance, Vibhor Steel Tubes possesses a solid foundation for growth, said analysts.
«Despite the strong listing, the high valuation could pose potential risks in the long term. Thus, it is the right time for investors to exit their holdings. However, those who still want to hold are suggested to keep the stop loss at around 380,» said Shivani Nyati, head of wealth, Swastika Investmart.
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Post the listing, the stock rallied further and was locked in a 5% upper circuit at Rs 442. This compares with an issue price of Rs 151 apiece.
The post-listing rally indicates there is still some appetite among investors but Avinash Gorakshakar of Profitmart Securities recommends investors to book at least 50% profits and the rest can be held for the longer run.
Net proceeds from the public offer are proposed to be utilised for funding of working capital requirements and general corporate purposes.
Incorporated in 2003, Vibhor Steel was converted into a public limited company in 2023. The company specialises in the manufacturing
