The Vibhor Steel Tubes IPO continued to witness strong demand from investors on its second day of bidding, February 14. Investors subscribed for 29.14 crore equity shares, marking an oversubscription of 81.14 times compared to the issue size of 35.92 lakh equity shares.
According to exchange data, non-institutional investors, particularly high net worth individuals, led the support for the issue by subscribing 186.86 times the allotted quota. Retail investors also showed significant interest, subscribing 78.09 times the portion reserved for them, while qualified institutional buyers bid 7.59 times the reserved portion.
Employees enthusiastically participated in the offering as well, subscribing 67.98 times the portion set aside for them. The company has reserved shares worth Rs 44.55 lakh for its employees.
Vibhor is the smallest IPO in terms of size in the current calendar year, following Plaza Wires which was launched towards the end of September 2023. The steel pipes and tubes manufacturer aims to raise Rs 72.17 crore through its IPO, which comprises solely a fresh issue portion.
The price band for the offer, closing on February 15, has been set at Rs 141-151 per share.
Based in Hisar, the company plans to utilize the net proceeds primarily for its working capital requirements, along with general corporate purposes. Vibhor Steel Tubes supplies steel pipes and tubes to various heavy engineering industries in India. It has a long-term agreement with Jindal Pipes for six years, under which Jindal will provide orders with a minimum quantity of 1 lakh MT per annum to fill the majority capacity of unit I & unit II.
