Did You Subscribe Vraj Iron and Steel IPO: Subscription Reached 1.67x on Day 1

Vraj Iron and Steel Ltd. opened its Initial Public Offering (IPO) to raise money from the public on June 26, 2024, and will close on June 28, 2024. The IPO is a book-built issue of Rs 171.00 crores, entirely a fresh issue of 0.83 crore shares.

Vraj Iron and Steel IPO price band has been set at ₹195 to ₹207 per share. The minimum lot size for an application is 72 Shares. The minimum amount of investment required by retail investors is ₹14,904. The minimum lot size investment for sNII is 14 lots (1,008 shares), amounting to ₹2,08,656, and for bNII, it is 68 lots (4,896 shares), amounting to ₹10,13,472.

Day Wise Subscription

On the 1st day of subscription, June 26, 2024, the IPO was subscribed to 1.67x. QIBs subscribed 0.33x, NIIs subscribed 1.09x, and retail investors subscribed 2.69x.

Grey Market Premium

The last GMP for Vraj Iron and Steel IPO is ₹75. With a price band of ₹207.00, the estimated listing price is ₹282 (cap price + today’s GMP). The expected percentage gain/loss per share is 36.23%.

Vraj Iron and Steel IPO Objectives

The company proposes to utilise the Net Proceeds in the following manner.

• Funding for Capital Expenditure towards the “Expansion Project” at Bilaspur Plan.t
• Repayment or prepayment of borrowings from HDFC Bank obtained by the company for the capital expenditure towards the “Expansion Project” at Bilaspur Plant.
• Capital expenditure towards the “Expansion Project” at Bilaspur Plant.
• General Corporate Purposes.

About Vraj Iron and Steel Limited

Incorporated in June 2004, Vraj Iron and Steel Limited manufactures Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj. The company runs two manufacturing plants in Raipur and Bilaspur, Chhattisgarh, covering 52.93 acres. As of March 31, 2023, the total installed capacity of the manufacturing plants, including intermediate and final products, was 231,600 tons per year.

The company currently has a production capacity of 57,600 TPA of MS Billets, which its rolling mills can use to manufacture TMT Bars with a production capacity of 54,000 TPA. The company’s product portfolio comprises offerings such as Sponge Irons, TMT Bars, MS Billets, and by-products Dolochar, Pellets, and Pig Iron, which cater to a mix of industrial customers and end-users.

Stay ahead with the latest on Upcoming IPOs! Discover promising opportunities and get ready to invest.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.