Vibhor Steel Tubes IPO GMP Today: Latest GMP, IPO Date, Price

February 12, 2024 IPO 3 min read
Vibhor Steel Tubes IPO GMP

Vibhor Steel Tubes Limited IPO: An Overview and Corporate Insight

Vibhor Steel Tubes Limited produces and ships a range of steel pipes and tubes, such as Mild Steel/Carbon Steel ERW Black and Galvanized Pipes, Hallow Steel Pipe, and Cold rolled Steel (CR) Strips/Coils. Founded in 2003, the company mainly serves the heavy engineering sector in India. It provides a wide assortment of steel pipes and tubes in different lengths customized to meet customer requirements. Their manufacturing process covers various shapes and sizes, including square, round, rectangular, elliptical, or bespoke designs..

Grey Market Premium Analysis and IPO Timelines – Vibhor Steel Tubes IPO

Date

GMP

February 12 ₹130
February 11 ₹130
February 10 ₹130
February 09 ₹125
February 08 ₹120
February 07 ₹120

With a price band of ₹151.00, the estimated listing price for Vibhor Steel Tubes IPO is ₹281.00 (the cap price plus today’s Grey Market Premium). This suggests an expected percentage gain per share of 86.09%.

Pricing Details and Lot Size – Vibhor Steel Tubes Limited IPO

The price band for Vibhor Steel Tubes IPO is ₹141 to ₹151 per share.

Book-Running Lead Managers and Registrar – Vibhor Steel Tubes Limited IPO

Khambatta Securities Ltd is the sole Book Running Lead Manager (BRLM) to the issue while KFin Technologies Limited is the registrar.

Offer for Sale and IPO Size Breakdown – Vibhor Steel Tubes Limited IPO

Vibhor Steel Tubes IPO, valued at Rs 72.17 crores, is solely composed of fresh shares and is set to enter the market as a book-built issue. There is no Offer-for-Sale component. 

IPO Price Band and Lot Size –Vibhor Steel Tubes Limited IPO

With a price band ranging from ₹141 to ₹151 per share, the minimum lot size for applications stands at 99 shares, requiring a minimum investment of ₹14,949 for retail investors. 

Non-Institutional Investors (sNII) are required to invest at least 14 lots (1,386 shares) amounting to ₹209,286, while Qualified Institutional Buyers (bNII) must invest a minimum of 67 lots (6,633 shares) totaling ₹1,001,583. These investment thresholds cater to various investor categories, ensuring participation opportunities across the spectrum.

IPO Timelines at a Glance – Vibhor Steel Tubes Limited IPO

Event Date
IPO Opening Date February 13,2024
IPO Closing Date February 15, 2024
IPO Allotment Date  February 16, 2024
Initiation of Refunds February 19, 2024
Credit of Shares to Demat February 19, 2024
IPO Listing Date February 20, 2024

Utilisation of Fresh Issuance and Technological Advancements –  Vibhor Steel Tubes Limited IPO

The remaining proceeds from the Issue after deducting issue-related expenses (Net Proceeds) will be allocated as follows:

  • Financing the company’s working capital needs.
  • Covering general corporate expenses.

Conclusion

The company is the main provider of tubes and pipes to Jindal Pipes Ltd. and currently holds a long-term contract spanning approximately 6 years. According to management, this contract isn’t exclusive, allowing the company the freedom to sell its products in open markets. The company has shown growth in both its revenue and profit for the periods reported. Considering the annualized earnings for FY24, it seems that the stock is fully valued. Knowledgeable investors might consider investing funds for the medium term.

Frequently Asked Questions (FAQ) – Vibhor Steel Tubes Limited IPO

What does Vibhor Steel Tubes Limited Ltd. specialise in?
Founded in 2003, the company mainly serves the heavy engineering sector in India. 

What is the primary purpose of Vibhor Steel Tubes Limited’s IPO?
The primary purpose is financing the company’s working capital needs.

Who are the lead managers for Vibhor Steel Tubes Limited’s IPO?
Khambatta Securities Ltd is the sole Book Running Lead Manager (BRLM) to the issue.

How is the IPO structured in terms of new issuance and offer for sale (OFS)?

Vibhor Steel Tubes IPO is a book built issue of Rs 72.17 crores. The issue is entirely a fresh issue. Hence, there is no OFS component. 

What is the lot size and minimum investment for retail investors in Vibhor Steel Tubes Limited IPO?
Non-Institutional Investors (sNII) are required to invest at least 14 lots (1,386 shares) amounting to ₹209,286, while Qualified Institutional Buyers (bNII) must invest a minimum of 67 lots (6,633 shares) totaling ₹1,001,583.

What is the price band for Vibhor Steel Tubes Limited IPO?
The price band for Vibhor Steel Tubes IPO is ₹141 to ₹151 per share.

How has the Grey Market Premium (GMP) trended for Vibhor Steel Tubes Limited IPO?
The GMP for today is Rs.130. 

When does the IPO open and close for subscription?
Vibhor Steel Tubes IPO will open for subscription on February 13 and close on February 15.

When is the allotment date for Vibhor Steel Tubes Limited IPO?
The finalisation of the basis of allotment for Vibhor Steel Tubes IPO will be done on February 16 2024, and the allotted shares will be credited to investors’ demat accounts by February 19.

When is Vibhor Steel Tubes Limited expected to be listed on the stock exchanges?
The equity shares of Vibhor Steel Tubes are proposed to be listed on February 20 ,2024, on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).


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