Vibhor Steel Tubes shares end 195% higher on listing day; should you hold or book profit?

Shares of Vibhor Steel Tubes Ltd closed 195% higher to the IPO price on Tuesday. Vibhor Steel Tubes stock ended at Rs 446.25 against the IPO issue price of Rs 151 on BSE. The steel stock ended 5% or Rs 21.25 higher against the listing price of Rs 421.

Market cap of the firm rose to Rs 846.19 crore on NSE. A total of 22.19 lakh shares of Vibhor Steel Tubes changed hands amounting to a turnover of Rs 96.63 crore on NSE.

On BSE, Vibhor Steel Tubes shares ended 193% higher at Rs 442 compared to the IPO issue price. Market cap of the steel firm stood at Rs 838.14 crore. Turnover rose to Rs 4.73 crore after a total of 1.10 lakh shares of Vibhor Steel Tubes changed hands on BSE.

Prashanth Tapse, Senior VP (Research), Mehta Equities has advised investors to book profit partially post the stellar listing on Tuesday.  

"Post listing, Vibhor would be matched with its listed peers on valuation front, giving the company limited upside from here. Hence, considering strong listing gains of around 180%, we recommend allotted investors to book partial profits around Rs 425-450 levels against the issue price of Rs 151, ” said Tapse.

Shivani Nyati, Head of Wealth, Swastika Investmart said, "Vibhor Steel Tubes defied even the most optimistic predictions, recording a phenomenal 182% gain on its listing day, soaring to Rs 425 per share compared to its issue price of Rs 151. This unprecedented performance vastly exceeds the previously anticipated surge, fueled by the company's strong fundamentals and the overwhelming investor response. Boasting a diverse product portfolio, an established distribution network, and consistent financial performance, Vibhor Steel Tubes possesses a solid foundation for growth. Despite the strong listing, the high valuation could pose potential risks in the long term. Thus, this listing is the right time for investors to exit their holdings; however, those who still want to hold are suggested to keep  a stop loss at around Rs 380."

Vibhor Steel Tubes shares made a stellar market debut, surging 181% to the IPO issue price on Tuesday. The stock opened at Rs 425 against the IPO price of Rs 151 per share on NSE. On BSE, the stock opened 179% higher at Rs 421. Market cap of Vibhor Steel Tubes climbed to Rs 798.32 crore. The IPO was held from February 13 to February 15. The price band of Vibhor Steel Tubes IPO was fixed at Rs 141 to Rs 151 per share. The company raised Rs 72.17 crore from the IPO. Prior to the initial share sale, the Haryana-based firm raised Rs 21.51 crore from anchor investors.

The issue was open to anchor investors on February 12 during which the company raised Rs 22 crore from Saint Capital Fund, Chhattisgarh Investments Ltd and Neomile Growth Fund-Series I. Vibhor Steel Tubes Limited manufactures, exports and supplies steel pipes and tubes to various heavy engineering industries in India. The promoters of the company held 98.24% stake before the share sale.

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