Vibhor Steel stock becomes first mainboard IPO of 2024 to list above 190% premium
Companies with strong fundamentals are particularly catching the attention of investors, leading to a robust subscription rate during their bidding period and subsequently translating into impressive debuts. Against this backdrop, Vibhor Steel, which made its stock market debut yesterday, experienced a significant listing gain, reflecting the broader trend in the market.
During the bidding period from February 13 to February 15, the Vibhor Steel IPO garnered a remarkable subscription rate of 298.86 times. From the first day, the IPO witnessed a strong response, maintaining strong momentum throughout the three-day bidding process.
This stellar response marked the IPO as the first to achieve a subscription rate exceeding 200 times in 2024. Following this strong demand, the stock debuted impressively, opening at an 181% premium of ₹425 per share compared to the issue price of ₹151. The stock continued to strengthen, concluding its debut day with a robust listing gain of 195.5%, settling at ₹446.3 per share.
Vibhor Steel also set a milestone as the first Mainboard IPO of 2024 to list with a premium of over 190%. Prior to Vibhor Steel, BLS E-Services held the top position with a listing gain of 171% and a subscription rate of 162.5 times.
About Vibhor Steel Tubes
Vibhor Steel Tubes is a manufacturer and exporter of mild steel, carbon steel, ERW black and galvanised pipes, hollow steel pipes, and cold-rolled steel (CR) strips and coils.
Since 2003, the company has been collaborating with Jindal Pipes Limited, manufacturing and supplying finished goods under the brand name “Jindal Star.”
It has recently renewed its agreement with Jindal Pipes for six years, ensuring a minimum annual order of 1 lakh MT with a 2% discount on the gross sale price. This minimum quantity will fill the majority capacity of Units I and II of the company.
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The tenure of this agreement is for six years from April 01, 2023, and can be further renewed if required by both parties, the company said in its RHP report.
With the help of Jindal Pipes Limited, the company has developed and implemented a wide range of networking channels throughout the industry and society to strengthen the scope of identifying the core customer base, designing the right marketing strategies for procurement, and liaising on projects to deliver customised solutions for clients.
The company exports its manufactured goods for Jindal Pipes Limited under the brand Jindal to overseas customers. As of September 30, 2023, it had been exported to around 10 countries.
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The company has expanded into a new product line, launched a new product, namely Crass Barriers, under its own brand, and started manufacturing and selling the product. It is also working on expanding its sales under the “Vibhor” brand continuously.
Steady Financial Growth
The company has demonstrated consistent revenue and profit growth over the past three fiscal years. Revenue from operations increased from ₹511.51 crore in FY21 to ₹818.48 crore in FY22, and further to ₹1,114.38 crore in FY23.
Similarly, the profit after tax (PAT) followed a similar upward trend, rising from ₹0.69 crore in FY21 to ₹11.33 crore in FY22, and further to ₹21.07 crore in FY23. In H1FY24, the company reported revenue of ₹531.24 crore and a PAT of ₹8.52 crore.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
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Published: 21 Feb 2024, 12:13 PM IST
