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Vibhor Steel Tubes, a prominent manufacturer of steel pipes and tubes, marked a stellar debut in the domestic market as its shares were listed today following the successful closure of its Rs 72.17 crore Initial Public Offering (IPO) on February 15.
The IPO, open for subscription from February 13 to 15, garnered overwhelming interest from investors, resulting in a remarkable oversubscription of more than 320 times.
Issued at a price of Rs 151 per share, Vibhor Steel Tubes saw its shares make a robust entry on the Bombay Stock Exchange (BSE) at Rs 421 and on the National Stock Exchange (NSE) at Rs 425.
This impressive debut translated to a substantial listing gain of approximately 181 percent for IPO investors.
Subsequently, the shares surged further, reaching the upper circuit limit at Rs 442.00.
The closing price stood firm at this level, indicating a substantial listing gain of 193 percent for investors on the very first day.
The IPO, totaling Rs 72.17 crore, comprised new shares with a face value of Rs 10 each.
The funds raised through this offering are earmarked for fulfilling the company’s working capital requirements and general corporate purposes.
Vibhor Steel Tubes specializes in manufacturing steel products such as Electric Resistance Welded Pipes, Hot-Dipped Galvanized Pipes, Hollow Section Pipes, Primer Painted Pipes, and SS Pipes.
The company operates two manufacturing facilities in Raigarh, Maharashtra, and Mahabubnagar, Telangana, with a warehouse located in Hisar, Haryana.
Additionally, the company has strategic plans to expand its product portfolio by manufacturing value-added products like crash barriers at its existing plants.
Moreover, it is in the process of setting up a new manufacturing unit in Sundargarh, Orissa, where the land has already been acquired, and orders for plant machinery have been placed.
Financially, Vibhor Steel Tubes has exhibited robust growth, with its net profit increasing from Rs 0.69 crore in the financial year 2021 to Rs 21.07 crore in the financial year 2023.
The company’s revenue has also experienced a compound annual growth rate (CAGR) exceeding 77 percent, reaching Rs 1,114.38 crore in FY 2023.
In the current financial year 2023-24, for the first half of April-September 2023, the company has reported a net profit of Rs 8.52 crore and a revenue of Rs 531.24 crore, highlighting its sustained financial health and growth trajectory.
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