Vibhor Steel Tubes shares fall, trim listing day gains; should investors worry?

Vibhor Steel share price today, Vibhor Steel IPO: A day after staging a stellar entry into the listed space, Vibhor Steel Tubes shares (VSTL) took a breather on Wednesday, February 21. The stock of Haryana-headquartered Vibhor Steel, a manufacturer of steel tubes and pipes, hit the lower circuit at five per cent at Rs 419.9 apiece on BSE, still a 178 per cent premium over the upper end of the price range of its IPO.

On Tuesday, Vibhor Steel shares finished the listing day at Rs 442 and Rs 446.3 apiece on BSE and NSE, respectively, a premium of as high as 195.5 per cent. The blockbuster listing followed a bumper IPO, which concluded on February 15 with an overall subscription of 299 times the equity on offer.

Under the IPO, shares were available for bidding in a price band of Rs 141-151 apiece.

Among the various categories of investors, non-institutional investors, also known as high net-worth individuals, chased the IPO most aggressively, with bids to the tune of 721 times the equity reserved.

Should investors buy, sell or hold Vibhor Steel Tubes shares now?

“Vibhor Steel Tubes defied even the most optimistic predictions on the listing day. This unprecedented performance vastly exceeds the previously anticipated surge, fuelled 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,” said Shivani Nyati, Head of Wealth at Swastika Investmart.

However, the analyst said that Vibhor Steel’s high valuation could pose potential risks in the long term despite the strong listing.

“Those who still want to hold are suggested to keep a stop loss at around Rs 380,” Nyati added.

Brokerages Hem Securities and Ventura had given a thumbs-up to the issue citing the steel product manufacturer’s position in areas such as electric resistance welded (ERW) pipes and cold rolled steel.

Swastika Investmart had also suggested subscribing to the issue with a cautious view.

What does Vibhor Steel Tubes do?

Incorporated in 2003, Vibhor Steel Tubes is a Haryana-based entity engaged in the manufacturing and export of products such as mild steel, carbon steel, ERW black and galvanised pipes, hallow steel pipes, and cold rolled steel (CR) strips and coils.