A new listing today morning and that too for an IPO which had met with a fantastic response.

Vibhor Steel got listed on the BSE at a whopping 179% premium at Rs.421 v/s IPO price of Rs.151 and is now currently trading at Rs.442.

The IPO had seen a super-duper response – it was overall subscribed 298.86x, with HNIs portion the biggest at 721.34x, Retail too did very well at 188.17x and QIBs at 178.7x.

This 20-year old steel tubes company has 2 plants in Raigad (Maharashtra) and Hyderabad (Telangana) with an aggregate manufacturing capacity of 2.21 lakh MTPA. It has long-term supply agreement with Jindal Pipes for 1 lakh MT finished goods annually. Vibhor seems to be more of a 3rd party manufacturer for Jindal Pipes under its brand ‘Jindal Star’, as nearly 90% of its Rs. 1,110 cr revenue is derived from this single customer Jindal Pipes.  

In our IPO Analysis, we had concluded – business has absolutely average fundamentals, but IPO pricing is lower than peers, which may yield some listing gains. But stock is not meant for portfolio holding. We had recommended the IPO for only listing gains.