Time: 2024-06-27
The initial public offer (IPO) of Vraj Iron and Steel, which opened for subscription today, has been booked over 1.5 times so far on the first day of the bidding process. Retail investors are driving the demand with a subscription of 2.6 times, followed by non-institutional investors, whose category was booked by 1.10 times. The part reserved for the Qualified Institutional Buyers (QIBs) has not witnessed any subscription yet.
Analysts advised investors to subscribe to the IPO as the company's well-established and strategically located manufacturing facilities, coupled with a focus on value-added products and ongoing expansion plans, position it for future growth. The company has fixed the price band at Rs 195-207 per equity share, where investors can bid for 72 shares in one lot.
In the grey market, the company's shares are trading with a premium of nearly 12% today. Aryaman Financial Services is the book running lead manager (BRLM) for the IPO. Chhattisgarh-based Vraj Iron and Steel is engaged in manufacturing of Sponge Iron, M S Billets, and TMT bars under the brand Vraj. The company currently operates through two manufacturing plants which are located at Raipur and Bilaspur in Chhattisgarh spread across 52.93 acres.
Vraj Iron and Steel IPO GMP today has skyrocketed to Rs 60 as the stake sale process opens for subscription on Wednesday, June 26, 2024. Vraj Iron and Steel IPO opened for subscription on Wednesday, June 26, 2024, and would conclude on June 28. By 10:30 am on Wednesday, Vraj Iron and Steel subscription status reached 33% of its total issue size of Rs 171 crore, with retail investors subscription standing at 57% and Non-Institutional Investors (NIIs) at 23%.
According to IPOWatch, Vraj Iron and Steel IPO GMP today stood at Rs 60, with an indicative listing gain of 29%. The company raised Rs 51 crore from anchor investors and the shares are expected to be listed on the NSE and BSE on Wednesday, July 3, 2024, with the expected allotment date on Monday, July 1, 2024.
Vraj Iron and Steel IPO Qualified Institutional Buyers (QIBs) reservation portion comprises 50% of the total IPO issue size, while Non-Institutional Investors (NII) reservation has been kept at 15% and retail investors reservation at 35%. The stake sale process is entirely a fresh equity issue of 82.60 lakh shares, aiming to raise nearly Rs 171 crore through the IPO. Promoters do not intend to sale any stake in the company.
In conclusion, the Vraj Iron and Steel IPO has garnered significant interest from investors, with strong subscription numbers and positive recommendations from analysts. The company's expansion plans and product offerings position it well for future growth, making it an attractive investment opportunity in the iron and steel sector.
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