Vibhor Steel Tubes' IPO Oversubscribed on Day 2; Listing on BSE and NSE by February 20, 2024

14 Feb 2024 , 03:33 PM

The IPO of Vibhor Steel Tubes Limited started on February 13, 2024 and runs until February 15, 2024. The company aims to raise ₹72.17 Crore through fresh shares with a price band of ₹141 to ₹151 per equity share. Click here to subscribe the IPO.

The book build issue is set for listing on both BSE and NSE, with IPO allotment expected to be finalized by February 16, 2024. Tentative listing date on both exchanges is February 20, 2024.

On Day 2, the non-institutional investors’ portion was oversubscribed by 203.44 times, QIBs’ portion witnessed 7.75 times subscription, and the retail portion was oversubscribed by 82.09 times, resulting in a total subscription of 86.71 times.

Steel tubes and pipes industry showed steady growth with 10% CAGR in production and 8.5% CAGR in consumption from FY19 to FY23.

Concerns include heavy reliance on Jindal Pipes Limited (over 90% business), potential raw material supply disruptions, high working capital requirements, and historical negative cash flow.

Vibhor Steel Tubes specializes in manufacturing, exporting, and supplying steel pipes and tubes to heavy engineering companies. Its product range includes ERW pipes, galvanized pipes, hollow section pipes, primer painted pipes, and crash barriers. The net proceeds from the IPO will be utilized for working capital requirements and general corporate purposes.

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