The IPO of Vraj Iron and Steel has received an overwhelming response from investors, with bids for 2.12 crore shares as against the 61.38 lakh shares on offer. This translates to a subscription rate of 3.46 times, showcasing the strong demand for the company’s shares.
The IPO, which opened for bidding on Wednesday, will close on Friday with a price band of Rs 195 to 207 per share. Investors can bid for a minimum of 72 equity shares and in multiples thereafter. The offer consists of a fresh issue of up to 82.60 lakh equity shares, with the proceeds to be used for repayment of borrowings and capital expenditure towards expansion projects.
Ahead of the IPO, Vraj Iron and Steel raised Rs 51.29 crore from anchor investors, indicating confidence in the company’s growth prospects. The company manufactures sponge iron, M.S. billets, and TMT bars under the brand Vraj, with manufacturing plants in Chhattisgarh boasting a total installed capacity of 231,600 tons per year.
With a net profit of Rs 44.58 crore and total income of Rs 301.32 crore for the nine months ended on 31 December 2023, Vraj Iron and Steel has a strong financial performance backing its growth trajectory. Investors are keenly watching the IPO as a potential opportunity to participate in the company’s promising future.
