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Vibhor Steel Tubes sees 86% premium in grey market; Read to know more

The raised money will be used to fund working capital requirements and general corporate purposes, the company said.

Vibhor Steel Tubes’ IPO bidding ended on February 15. The shares of the company changed hands at a premium of 86% to Rs 281 in the grey market a day after the issue was closed for bidding. 

The grey market is an unofficial market where shares trade illegally before they get listed on the bourses. 

The company opened its IPO bidding on February 13 to collect 72.17 crore by offering 4.8 million shares. The company set the issue’s price band at Rs 141-151. The shares of the company will be listed on both the exchanges, NSE and BSE

A retail investor had to bid for a of minimum 99 shares summing to Rs 14,949 at the upper band of the IPO i.e. Rs 151. The company offered 1.4 million shares to the anchor investors of the issue from the total offered shares and raised 52. 

The company is a manufacturer, exporter, and supplier of steel pipes and tubes to heavy engineering companies. The company manufactures ERW pipes for application in water transport, oil, gas, and other non-toxic supplies; hot-dipped, galvanised pipes for application in agriculture and infrastructure; hollow section pipes in square and rectangular forms; primer painted pipes; and crash barriers for application in railways, highways, and roads. 

The raised money will be used to fund working capital requirements and general corporate purposes, the company said in the issue papers it filed with the market’s regulator, SEBI

Source:financialexpress.com

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