Vibhor Steel IPO: Check Allotment Dates, Subscription Status, Debut Date; GMP Hints Premium Listing

The Vibhor Steel Tubes Initial Public Offering (IPO) is set to close today, with investors eager to own some portion of the IPO. The IPO has garnered attention, with the subscription status reflecting an overwhelming response and the grey market signalling a robust premium. Here's a closer look at the latest developments and what investors can expect as the IPO bidding draws to a close.

After two days of bidding, the Vibhor Steel Tubes IPO has been subscribed by 101.42 times. The retail portion witnessed a strong response at 90.28 times, showcasing the enthusiasm among individual investors. Notably, the Non-Institutional Investors (NII) segment saw an extraordinary subscription of 252.20 times, while the Qualified Institutional Buyers (QIB) segment stood at 8.52 times.

As of 11:40 am on the third day of bidding, the public issue has been oversubscribed 145.68 times, with the retail portion leading at 122.99 times. The NII portion has surged to an astounding 381.77 times, and the QIB segment stands at 9.02 times.

These figures underscore the strong demand for Vibhor Steel Tubes shares, suggesting a positive outlook among investors for the company's growth prospects in the steel industry.

Market observers have been closely watching the grey market, and the signals for Vibhor Steel Tubes IPO remain positive. The Grey Market Premium (GMP) today is at Rs 122, indicating an impressive 80% listing premium for investors. After a correction on Tuesday, the GMP has rebounded, reflecting the robust sentiment in the grey market.

The secondary market mood turns bullish following a strong recovery on Wednesday. This positive sentiment, coupled with the stellar subscription numbers, bodes well for Vibhor Steel Tubes as it approaches its IPO closing.

With the IPO bidding concluding today, investors have a limited window to apply for the book build issue. The allotment process is expected to be finalized on February 16, and Vibhor Steel Tubes is poised to make its debut on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on February 20.

The IPO, aiming to raise Rs 72.17 crore through fresh shares, presents an opportunity for investors to join the growth trajectory in the steel industry. The price band of Rs 141 to Rs 151 per share provides a reasonable entry point for those looking to be part of Vibhor Steel Tubes' future.

Vibhor Steel Tubes plans to utilize the net proceeds from the IPO for working capital requirements and general corporate purposes. The minimum lot size for retail investors is set at 99 shares, requiring a minimum investment of Rs 14,949. The allocation structure allocates 50% of the net offer for Qualified Institutional Buyers, 35% for Retail Investors, and 15% for Non-Institutional Investors, ensuring a diverse pool of investors.

Khambatta Securities Ltd serves as the Book Running Lead Manager (BRLM), overseeing the functioning of the IPO process. Kfin Technologies Ltd has been entrusted as the registrar, ensuring an efficient allotment and registration process.

Established in 2003, Vibhor Steel Tubes has been a player in the manufacturing and export of Mild Steel/Carbon Steel ERW Black and Galvanized Pipes, Hallow Steel Pipe, and Cold-rolled Steel (CR) Strips/Coils. The company, with two decades of experience, has been a vital supplier to various heavy engineering industries in India.

The financials of Vibhor Steel Tubes showcase a robust growth trajectory. In FY23, the company reported an increase in revenue, reaching Rs 1,114.38 crore compared to Rs 818.48 crore in FY22. For the period ending September 2023, the revenue stood at Rs 531.24 crore. The net profit witnessed growth, rising to Rs 21.07 crore in FY23 from Rs 11.33 crore in FY22, with a bottom line of Rs 8.52 crore for the April-September 2023 period.