Vibhor Steel Tubes debuts the bourses on a bumper note with an 181% premium at Rs 425 on February 20. The company opened bidding for retail investors on February 13 and closed on February 15. The company raised 72.17 crore by offering a total of 4.8 million shares. 

The company’s shares were seeing a premium of 93% in the grey market. It is an illegal market where shares exchange hands before getting listed on the bourses.

The company got listed on both the bourses NSE and BSE. The company set the IPO’s price band at Rs 141 to 151 per equity share and kept the minimum lot size of 99 shares aggregating to Rs 14,949.

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The steel pipes company has raised Rs 21.52 crore from the anchor investors by offering them 1.4 million shares. 

“Boasting a diverse product portfolio, an established distribution network, and consistent financial performance, Vibhor Steel Tubes possesses a solid foundation for growth. 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,” Shivani Nyati, Head of Wealth at Swastika Investmart.  

The company will be using the raised amount to fund the working capital requirements and general corporate purposes.

The company manufactures, exports, and supplies steel pipes and tubes to various heavy engineering industries in India. Vibhor Steel Tubes has two manufacturing facilities one of which is situated in Raigad, Maharashtra and the other in Mahabubnagar of Telangana. 

The book-running lead manager for the issue was Khambatta Securities and the registrar was Kfin Technologies.