Is it worth subscribing to the Vibhor Steel Tubes IPO which has received exceptional response from investors?

Vibhor Steel Tubes, a manufacturer and exporter of steel pipes, has fixed the price band for its upcoming initial public offering (IPO) at ₹141–151 per equity share. Retail investors have the opportunity to submit bids for up to 13 lots, with each lot containing 99 shares. The offering consists entirely of fresh shares, totaling 44.55 lakh, amounting to ₹72.17 crore, and these shares will be listed on both the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).

Vibhor Steel Tubes has been collaborating with Jindal Pipes Limited since 2003, manufacturing and supplying finished goods under the brand name “Jindal Star.” The company 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. The agreement is set to last for six years from April 01, 2023, and can be further renewed if required by both parties.

The company has expanded its product line by launching a new product, Crass Barriers, under its own brand, and started manufacturing and selling the product. It has also been working on expanding its sales under the “Vibhor” brand continuously.

Mehta Equities, a domestic brokerage firm, views the IPO as an opportunity for investors to participate in a prominent steel pipes manufacturer and exporter with a rich history spanning over two decades. The brokerage firm recommends investors to ‘SUBSCRIBE’ to the issue solely from a listing perspective. Another brokerage firm, ProfitMart, also recommends ‘SUBSCRIBE’ to the IPO for long-term investment, expressing confidence in Vibhor Steel Tubes Limited’s ability to deliver consistent performance and provide an excellent investment opportunity for investors with a long-term horizon.

The IPO of Vibhor Steel Tubes is definitely something to watch out for as it presents a valuable investment opportunity for retail investors and promises growth and sustainability in the steel industry.

Published: 14 Feb 2024, 01:37 PM IST