- Vibhor Steel Tubes: Share price doubles on listing.
- Market capitalization reaches ₹838 crore.
- Subscription rate: 320 times the shares on offer.
- Expansion plans include Orissa unit and Telangana capacity boost.
- Strategic partnership with Jindal Pipes enhances growth.
Vibhor Steel Tubes makes a fantastic debut with a remarkable listing :
Vibhor Steel Tubes’ IPO on Dalal Street resulted in a 192% increase in share price, reaching ₹442 from ₹151. The Bombay Stock Exchange reports the company’s market capitalization at ₹838 crore.
Grey Market Anticipation and Overwhelming Subscriptions :
Grey market speculation suggested that Vibhor Steel Tubes would gain 86% on its debut. The subscription rate was 320 times the number of shares available, indicating an extraordinary response. Notably, individual and institutional investors expressed strong interest, ensuring the IPO’s success.
A Positive Outlook Amidst Volatility :
In the midst of 2024’s tumultuous market conditions, recent market debuts have produced varied results. While some experienced modest listing gains, others, such as Apeejay Surrendra Parks, BLS E-Services, and Nova Agritech, provided positive returns to investors. The rise in Vibhor Steel Tubes’ share price reflects investor confidence and market optimism.
Expansion Plans and Strategic Partnerships :
Vibhor Steel Tubes, a Haryana-based producer specialising in high-quality steel tubes and pipes, intends to use the IPO proceeds to meet its working capital requirements. The company now has two manufacturing facilities and a warehouse in Maharashtra, Telangana, and Haryana. It serves markets in Maharashtra, Gujarat, Madhya Pradesh, Telangana, Karnataka, and Tamil Nadu.
Vibhor Steel Tubes’ expansion strategy includes the establishment of a new production unit in Orissa with a capacity of 1,20,000 MTPA. It also plans to increase the existing unit’s capacity in Telangana from 96,000 MTPA to 1,52,000 MTPA, demonstrating its commitment to expansion and market penetration.
Strategic Alliances for Long-term Growth :
Vibhor Steel Tubes strengthened its growth trajectory by signing a strategic partnership with Jindal Pipes Limited in April 2023. Under this agreement, the company manufactures and supplies completed goods totaling 1,00,000 MTPA to Jindal Pipes, which sells the products under the Jindal Star brand name.
Analysts such as Rajan Shinde, a research analyst at Mehta Equities, emphasise the company’s strengths, particularly its relationship with Jindal Pipes. He recommends the company with a’subscribe’ recommendation, citing capacity expansion and long-term visibility as critical drivers of continued development.
In conclusion :
The impressive debut of Vibhor Steel Tubes highlights the company’s market potential. With planned growth and solid alliances, the company is well-positioned to thrive in the ever-changing steel industry.