Last Updated: February 20, 2024, 12:33 IST
Vibhor Steel Tubes IPO acquired a powerful response from the first market buyers
Vibhor Steel Tubes inventory makes stellar market debut; do you have to e-book revenue, purchase extra or maintain?
Vibhor Steel Tubes inventory makes bumper market debut: Vibhor Steel Tubes debuts the bourses on a bumper be aware with an 181% premium on the NSE at Rs 425 on February 20. The debut surpassed analysts’ expectations of an 86-92 % premium on February 20. Meanwhile, the inventory opened at Rs 421 on the BSE towards the difficulty worth of Rs 151.
The firm’s shares had been seeing a premium of 93% within the gray market. It is an unlawful market the place shares alternate arms earlier than getting listed on the bourses.
The concern had acquired a powerful response from buyers, getting subscribed 320 occasions. High internet-price people (HNIs) remained on the forefront, shopping for 770 occasions the allotted quota. Retail buyers picked up 200 occasions the portion put aside for them, whereas the half reserved for certified institutional consumers was booked 191 occasions.
The worth band for the Rs 72.17-crore concern, which opened for subscription on February 13 and closed on February 15, was fastened at Rs 141-151 a share. It was solely a recent concern of shares. The firm will use the online proceeds to fund the working capital necessities and for normal company functions.
The anchor e-book opened for a day on February 12 by which the corporate raised Rs 22 crore from Saint Capital Fund, Chhattisgarh Investments Ltd, and Neomile Growth Fund-Series I.
Vibhor Steel Tubes is a producer and exporter of delicate metal/carbon metal ERW black and galvanised pipes, hallow metal pipes and chilly-rolled metal strips/ coils. The firm has an extended-time period settlement for six years with Jindal Pipes. Under the settlement, Jindal will present orders with a minimal amount of 1,00,000 tonnes every year to fill the bulk capability of Unit I and Unit II of the corporate. The firm has two manufacturing amenities in Raigad, Maharashtra, and Mahabubnagar, Telangana, and a warehouse in Haryana’s Hisar.
What Should Investors Do Now?
“We advise investors to book profits on the listing day and subsequently consider investing in the company after evaluating its quarterly performance in the near term,” stated Dhruv Mudaraddi, Research Analyst, StoxBox.
“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 a stop loss at around Rs 380,” stated Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
Disclaimer:Disclaimer: The views and funding suggestions by consultants on this News18.com report are their very own and never these of the web site or its administration. Users are suggested to verify with licensed consultants earlier than taking any funding choices.
