Vibhor Steel Ltd. made a thunderous entry into the Indian stock market, marking one of the most remarkable listings of the year. Surging up to an astounding 195% over its issue price on its first day of trading, Vibhor Steel’s debut catapulted it into the echelons of the best market debuts ever for Indian stocks.
Listing at Rs 425 apiece on the National Stock Exchange and Rs 421 per share on the BSE, Vibhor Steel commanded a premium of 178% over its IPO price right out of the gate. The stock’s early momentum saw it climb as high as 193.70% to Rs 443.50 apiece, reflecting investor enthusiasm and confidence in the company’s prospects.
Closing the day with a premium of 192.72% over the IPO price, Vibhor Steel’s shares ended at Rs 442 apiece, marking a 4.99% gain from its listing price. This milestone positions Vibhor Steel as the best listing of the year thus far, surpassing Religare Enterprises Ltd.’s premium on its debut.
The exceptional response to Vibhor Steel’s IPO underscores the company’s strong fundamentals and investor appeal. With subscriptions soaring to 298.86 times the offered shares by the end of the third and final day, the overwhelming demand was led by non-institutional investors, retail investors, institutional investors, and employees alike.
Looking ahead, Vibhor Kaushik, the managing director at Vibhor Steel Tubes, unveiled ambitious expansion plans, particularly in Odisha. The company has already acquired lands in Odisha, with substantial construction already underway. The Odisha plant, slated to be funded through internal accruals, is expected to witness an initial capital expenditure (capex) of around Rs 60 crore, to be executed in phases.
Kaushik expressed optimism about the project, indicating that initial production at the Odisha plant is anticipated to commence by the end of the first quarter or the beginning of the second quarter. This strategic expansion underscores Vibhor Steel’s commitment to growth and underscores its position as a key player in India’s thriving steel industry.
As Vibhor Steel charts its course for the future, investors eagerly anticipate further developments and milestones in the company’s journey of expansion and value creation.
