Vibhor Steel Tubes IPO Lists 181.46% higher, hits upper circuit

Bumper listing for Vibhor Steel Tubes IPO, then upper circuit

Vibhor Steel Tubes IPO had a relatively robust listing on 20th February 2024, listing at a bumper premium of 181.46% on the NSE but on top of that managed to close with smart gains of 5% over the listing price and closing at the upper circuit price of the day. The stock of Vibhor Steel Tubes Ltd closed the day at ₹446.25 per share, a premium of 5% over the listing price of ₹425 per share and a premium of 195.53% over the IPO issue price of ₹151 per share. Certainly, the IPO allottees of Vibhor Steel Tubes Ltd would be pleased at the way the stock managed to close in the positive on the day and also rally further, despite the volatile vibes from the Nifty and the Sensex during the day of listing.

The pattern was largely similar on the BSE also, with the stock opening at a premium and then rallying further during the day. On the Bombay Stock Exchange (BSE), the stock of Vibhor Steel Tubes IPO listed at ₹421 per share, a premium of 178.81% over the IPO issue price of ₹151 per share. For the day, the stock closed on the BSE at ₹442 per share, an overall premium of 4.99% on the IPO listing price of ₹421 per share and also a hefty premium of 192.72% over the issue price of ₹151 per share.  On the NSE, the stock of Vibhor Steel Tubes Ltd closed the listing day exactly at the high price of the day, which also happened to be the upper circuit price. Vibhor Steel Tubes Ltd had a circuit filter of just 5% either ways, despite being a mainboard issue. On the BSE also, the stock of Vibhor Steel Tubes Ltd closed the day exactly at the high price of the day, which also corresponded to the upper circuit filter of the day. Here is the story of the IPO action on 20th February 2024.

Stock gains as Nifty and Sensex also close with gains

While the closing price of Vibhor Steel Tubes IPO on 20th February 2024 was substantially above the IPO issue price on both the stock exchanges, it did also hit the upper circuit and closed at that level for the day. The stock never went below the listing price, which also turned out to be the low price of the day. In fact, the stock closed above the listing price on the NSE and the BSE and also substantially above the IPO issue price. However, it must be remembered that this was helped by a strong listing and robust index performance of the Nifty and Sensex. The stock had a circuit filter limit either ways of just 5%, despite being a mainboard issue. The reason is that the IPO size is quite small and hence 5% would be needed to ensure risk management.

On 20th February 2024, the Nifty closed 75 points higher while the Sensex closed 349 points higher. On both the exchanges, it was more an example of the indices being volatile, but eventually closing with gains in the absence of too many long positions in the market. Over the last few days, despite the global headwinds, the Nifty and Sensex have headed up.

IPO subscription and pricing details

The stock had reported strong subscription in the IPO. The subscription was 298.86X  overall and QIB subscription was at 178.73X. In addition, the retail portion had got subscribed 188.18X in the IPO while the HNI / NII portion also got a heavy subscription of 721.33X. Hence the listing was expected to be relatively strong for the day. Since the listing was strong, the performance of the stock also showed a strong listing and also locked in the upper circuit for most part of the day on the NSE and also on the BSE. It was a positive listing performance for Vibhor Steel Tubes Ltd on 20th February 2024.

The IPO price was fixed at the upper end of the band at ₹151 per share which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹141 to ₹151 per share. On 20th February 2024, the stock of Vibhor Steel Tubes Ltd listed on the NSE at a price of ₹425 per share, a premium of 181.46% over the IPO issue price of ₹151 per share. On the BSE also, the stock listed at ₹421 per share, a premium of 178.81% over the IPO issue price of ₹151 per share. Here is the Vibhor Steel Tubes Ltd listing story on 20th February 2024.

How the stock of Vibhor Steel Tubes IPO closed on both exchanges

On the NSE, Vibhor Steel Tubes Ltd closed on 20th February 2024 at a price of ₹446.25 per share. That is a first day closing premium of 195.53% on the issue price of ₹151 and also a premium of 5% on the listing price of ₹425 per share. In fact, the listing price turned out to be the low price of the day with the stock getting locked into the upper circuit and spending most of the day at the upper circuit price. On the BSE also, the stock closed at ₹442 per share. That represents a first day closing premium of 192.72% above the IPO issue price of ₹151 per share and a premium of 4.99% above BSE listing price of ₹421 per share.

On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 rallying higher. There are some key points to note here. Normally, the mainboard IPOs have a circuit filter of 20% either ways; which was not the case with Vibhor Steel Tubes Ltd. In the caser of Vibhor Steel Tubes Ltd, the stock had a circuit filter limit of 5% either ways. The stock traded on the NSE and the BSE in the Trade to Trade (T2T) segment with where only delivery trades are permitted. On the NSE, the stock closed with open unmet buying quantity of 7,182 shares, showing a lot of pent up buying pressure for the stock on the listing day. Similar sentiments were echoed on the BSE also.

Price volume story of Vibhor Steel Tubes IPO on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 20th February 2024. On Day-1 of listing, Vibhor Steel Tubes Ltd touched a high of ₹446.25 per share on the NSE and a low of ₹420 per share. The premium to the listing price sustained through most part of the day. However, in the first half, the stock was under some bit of pressure before it bounced back to close in the positive. During the day, the stock went briefly below the listing price, but showed a sharp bounce from lower levels to spend most of the day locked at the upper circuit.

For the day on the NSE, the upper circuit price was ₹446.25 per share while the lower circuit price was ₹403.75 per share. During the day, the high price of the day at ₹446.25 was exactly at the upper band price while the low price of the day at ₹420 per share was well above the lower band price for the day at ₹403.75 per share. On Day-1 of listing, the Vibhor Steel Tubes Ltd stock traded a total of 22.225 lakh shares on NSE amounting to value of ₹96.77 crore (traded turnover) during the day.  The order book during the day showed a lot of back and forth with the bias clearly shifting in favour of the buyers in the second half, after some sharp selling in the first half of the day. The stock closed the day with pending buy orders of 55,872 shares on the NSE, showing pent-up buying.

Price volume story of Vibhor Steel Tubes IPO on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 20th February 2024. On Day-1 of listing, Vibhor Steel Tubes Ltd touched a high of ₹442 per share on the BSE and a low of ₹421 per share. The premium to the listing price sustained through most part of the day. However, in the first half, the stock was under some bit of pressure before it bounced back to close in the positive. During the day, the stock never went below the listing price, but showed a sharp bounce to spend most of the day locked at the upper circuit price of the day.

For the day on the BSE, the upper circuit price was ₹442 per share while the lower circuit price was ₹399.95 per share. During the day, the high price of the day at ₹442 was exactly at the upper band price while the low price of the day at ₹421 per share was exactly the listing price of the day and well above the lower band price for the day at ₹399.95 per share. On Day-1 of listing, the Vibhor Steel Tubes Ltd stock traded a total of 1.10 lakh shares on BSE amounting to value of ₹4.74 crore (traded turnover) during the day.  The order book during the day showed a lot of back and forth with the bias clearly shifting in favour of the buyers in the second half, after some sharp selling in the first half of the day. The stock closed the day with pending buy orders on the BSE, showing pent-up buying.

Market capitalization, free float, and delivery volumes

Volumes on the BSE were generally lower than on the NSE, but the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session, with some hints of offloading in the first half of the trading session. The sharp bounce in the Nifty and the Sensex did help the stock along the way. That makes it a rather attractive stock after the strong listing on Tuesday and its ability to sustain gains on a tough trading day. On the NSE, out of the total 22.425 lakh shares traded during the first day of trading, the deliverable quantity represented 22.425 lakh shares. Remember, the stock was permitted to trade on the BE segment on the NSE where only mandatory delivery trades are permitted. Hence all trades were delivery only.

Even on the BSE, out of the total 1.10 lakh shares of quantity traded, the delivery volumes stood at 1.10 lakh shares. That is because, the stock is traded in the T2T segment where trading has to be mandatorily for delivery only. At the close of Day-1 of listing, Vibhor Steel Tubes Ltd had a market capitalization of ₹838.14 crore. Vibhor Steel Tubes Ltd has issued capital of 189.62 lakh shares with a par value of ₹10 per share. The ratio of market cap to issue size (a sign of market liquidity creation) was 11.61X.