Vraj Iron and Steel IPO: Latest GMP and Allotment Details for July 1

As the bidding period for Vraj Iron and Steel’s initial public offering (IPO) concludes, investors are now eagerly awaiting the allotment results, expected to be finalized on Monday, July 1, 2024.

The IPO, valued at ₹171 crore, was open for subscription from June 26 to June 28, with a price range set between ₹195 and ₹207 per share.

According to chittorgarh.com, shares of Vraj Iron and Steel Limited are currently trading at a 75 percent premium in the grey market. This suggests an estimated listing price of ₹282, which is 36.23 percent higher than the issue price of ₹207. The grey market premium (GMP) remained steady on June 28, 2024, but was higher at ₹90 on June 27, 2024.

The IPO saw a tremendous response from investors, being subscribed 126.36 times over the three-day bidding period. Investors placed bids for 73.07 crore shares against the 57.82 lakh shares on offer. The Non-Institutional Investors (NII) category saw the highest subscription at 221.66 times, followed by the Qualified Institutional Buyers (QIB) at 173.99 times. Retail investors subscribed 58.31 times.

Details of Vraj Iron and Steel IPO The IPO is entirely a fresh issue of 0.83 crore shares, amounting to ₹171 crore. The company plans to use the funds for several purposes: 1) Capital Expenditure for the “Expansion Project” at the Bilaspur Plant, 2) Repayment or prepayment of loans from HDFC Bank for the “Expansion Project” at Bilaspur Plant, 3) General Corporate Purposes.

The minimum investment for retail investors is ₹14,904, with a minimum lot size of 72 shares.

The issue has allocated 35 percent of its size for NIIs, 20 percent for QIBs, and 15 percent for retail investors. Additionally, 30 percent of the issue is reserved for anchor investors.

Aryaman Financial Services Limited is the lead manager for the IPO, and Bigshare Services Pvt Ltd is the registrar. The shares are expected to be listed on the BSE and NSE on July 3, 2024.

Founded in June 2004, Vraj Iron and Steel Limited produces Sponge Iron, M.S. Billets, and TMT bars under the Vraj brand. The company operates two manufacturing plants in Raipur and Bilaspur, Chhattisgarh. Their product range includes Sponge Irons, TMT Bars, MS Billets, and by-products like Dolochar, Pellets, and Pig Iron, catering to both industrial customers and end-users.

The company’s revenue grew by 24.87 percent, and its profit after tax (PAT) increased by 88.12 percent between the financial years ending March 31, 2023, and March 31, 2022.

Most brokerages have recommended subscribing to the IPO.