Vibhor Steel Tubes Shares Soar 195% on Listing Day; Profit Booking or Hold?

Ronit Kawale
Ronit Kawale - Senior Editor
3 Min Read

Vibhor Steel Tubes witnessed a spectacular market debut, with shares closing 195% higher than the IPO price on Tuesday. The stock concluded at Rs 446.25 against the IPO issue price of Rs 151 on BSE, marking a 5% increase from the listing price of Rs 421. The firm’s market capitalization surged to Rs 846.19 crore on NSE, and a total of 22.19 lakh shares changed hands, resulting in a turnover of Rs 96.63 crore on NSE.

On BSE, Vibhor Steel Tubes shares saw a 193% surge, closing at Rs 442 compared to the IPO issue price, with a market cap of Rs 838.14 crore. Turnover rose to Rs 4.73 crore as 1.10 lakh shares changed hands on BSE.

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Prashanth Tapse, Senior VP (Research) at Mehta Equities, recommends investors to consider partial profit booking after the stellar listing on Tuesday. He suggests, “Post listing, Vibhor would be matched with its listed peers on the valuation front, giving the company limited upside from here. Hence, considering strong listing gains of around 180%, we recommend allotted investors to book partial profits around Rs 425-450 levels against the issue price of Rs 151.”

Shivani Nyati, Head of Wealth at Swastika Investmart, acknowledges Vibhor Steel Tubes’ exceptional performance but cautions about the potential risks associated with high valuation in the long term. She suggests that investors may consider exiting their holdings at this point. For those still inclined to hold, a suggested stop loss is around Rs 380.

Vibhor Steel Tubes’ IPO, held from February 13 to February 15, saw the stock open at Rs 425 on NSE and Rs 421 on BSE, marking a significant premium to the IPO issue price. The company raised Rs 72.17 crore from the IPO and had previously secured Rs 21.51 crore from anchor investors, including Saint Capital Fund, Chhattisgarh Investments Ltd, and Neomile Growth Fund-Series I.

The Haryana-based firm, engaged in manufacturing, exporting, and supplying steel pipes and tubes to heavy engineering industries in India, witnessed strong investor response. The promoters held a 98.24% stake before the share sale.

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