Best IPO of 2024: Vibhor Steel debuts at 181% premium
Vibhor Steel Tubes, a producer and exporter of various steel products, made a remarkable debut today. Its shares got listed at 181% premium over the initial public offering (IPO) price. The stock began trading at Rs. 425 on the NSE and Rs. 421 on the BSE, surpassing the predicted 86-92% premium. Vibhor's IPO attracted significant interest from investors, resulting in a subscription rate of 320 times. This is by far the best IPO this year.
Analysts recommend booking partial profits
Prashanth Tapse, Senior VP (Research) at Mehta Equities, said, "After listing, Vibhor's valuation will be in line with its listed peers, offering limited upside. We recommend investors to book partial profits around Rs. 425-450 levels." Shivani Nyati, Head of Wealth at Swastika Investmart, also suggested investors either exit their holdings or maintain a stop loss around Rs. 380 due to potential long-term risks from high valuations.
Strong response from investors
The overwhelming response to Vibhor Steel Tubes's IPO was led by high net-worth individuals (HNIs), who purchased 770 times their allotted quota. Retail investors acquired 200 times their portion, while qualified institutional buyers subscribed 191 times. The price range for the Rs. 72.17 crore issue was set at Rs. 141-151 per share.
Company details and future plans
Vibhor Steel Tubes plans to use the net proceeds from the IPO to fund working capital requirements and general corporate purposes. The company has a six-year agreement with Jindal Pipes for a minimum order of 100,000 tons per annum. With manufacturing facilities in Maharashtra and Telangana and a warehouse in Haryana, Vibhor Steel is poised for growth. Dhruv Mudaraddi, Research Analyst at StoxBox, advised investors to book profits on listing day and consider reinvesting after evaluating the company's quarterly performance.