Friday, February 23, 2024

Vibhor Steel: Stock at 79% premium in gray market before IPO opens, indications of high returns on listing.

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Vibhor Steel Tubes IPO GMP, Price Band, Lot Size: The action in the IPO market is going to continue next week also. While shares of 4 companies will be listed in the market, a new IPO will open for subscription. The IPO of Vibhor Steel Tubes Limited, a company manufacturing steel pipe and tube products, will open on 13 February. The size of the company’s IPO is Rs 72 crore. The price band for IPO has been fixed at Rs 141-151 per share. Investors will have the opportunity to invest in it till 15th February. This IPO is a completely fresh equity issue.

GMP: Gray market premium reaches 79%

There is a lot of craze being seen in the gray market regarding the IPO of Vibhor Steel Tubes Limited. Even before the opening of the IPO, the unlisted stock of the company is at a premium of Rs 120. That means in terms of upper price band Rs 151, it is likely to be listed at Rs 271. This premium is 79 percent.

minimum investment amount

In the IPO of Vibhor Steel Tubes Limited, there will be 99 shares in 1 lot. Investors will have to bid Rs 14,949 for at least 1 lot. You can bid Rs 1,94,337 for a maximum of 13 lots or 1287 shares. The company will use the proceeds from the IPO for financing working capital needs and general corporate purposes.

how much reserve for whom

In the IPO of Vibhor Steel Tubes Limited, 35 percent share is reserved for retail investors. Whereas 50 percent share is reserved for Qualified Institutional Buyers i.e. QIB. Whereas 15 percent share is reserved for non-institutional investors i.e. NII.

what does the company do

Vibhor Steel Tubes is a manufacturer and exporter of Mild Steel ERW Black and Galvanized Pipes, Hollow Steel Pipes, Cold Rolled Steel (CR) Strips. The company has been in business for more than 2 decades. Steel pipes and tubes can be used for many purposes. For example, steel pipes for frames and shafts, steel pipes for bicycle frames, steel pipes for furniture, CDW pipes for shockers, steel pipes for various structural purposes, steel pipes for engineering purposes.

The company has an in-house quality team comprising of 640 employees working under the supervision of the Board of Directors. The quality control team ensures that the raw materials as well as the final products are tested on all quality parameters to ensure that they are in compliance with the international standards.

company financials

The revenue, expense and PAT of Vibhor Steel Tubes in the financial year 2021 were Rs 511.51 crore, Rs 507.35 crore and Rs 0.69 crore, which increased to Rs 818.48 crore, Rs 803.12 crore and Rs 11.33 crore in the financial year 2022. Whereas in the financial year 2023 it became Rs 1114.38 crore, Rs 1086.15 crore and Rs 21.07 crore.

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