Vraj Iron & Steel made a strong debut on the stock market, listing at ₹240 apiece on both BSE and NSE, a premium of 15.94 percent from its IPO price of ₹207. While it fell short of some expectations for listing gains, the stock saw follow-up buying and hit its 5 percent upper circuit limit at ₹251.95, resulting in an overall gain of 21.7 percent over the issue price.
Experts have expressed confidence in Vraj Iron & Steel, citing its track record of consistent profitability over the past three years and its strong financial performance. However, they have also highlighted risks such as the concentration of manufacturing facilities in a single region and the competitive nature of the steel industry. Despite these factors, the IPO’s P/E valuation of 9.48x is considered reasonable.
The IPO, which raised ₹171 crore, saw strong interest from institutional investors, with the issue being subscribed 119 times on its final bidding day. The company intends to utilize the proceeds for general corporate purposes and an expansion project at its Bilaspur site.
Founded in 2004, Vraj Iron & Steel manufactures a range of products including Sponge Iron, MS Billets, and TMT bars. During the IPO process, brokerage firms were largely positive, recommending investors to subscribe. Aryaman Financial Services acted as the book-running lead manager, with Bigshare Services serving as the registrar.
Overall, Vraj Iron & Steel’s successful debut and strong investor interest indicate a promising future for the company in the steel industry.
