Vraj Iron and Steel IPO Garners Strong Support from Investors
The Vraj Iron and Steel IPO, which kicked off on 26th June 2024, has been met with a positive reception from primary market investors. The sponge iron maker has set a price band of ₹195 to ₹207 per equity share for its public offering, with the aim of raising ₹171 crore through the issuance of fresh shares. The encouraging subscription status in the primary market indicates a strong investor sentiment towards this mainboard IPO.
As of today, shares of Vraj Iron and Steel are trading at a premium of ₹90 in the grey market, up from ₹86 on Thursday. The grey market premium (GMP) is a key indicator of market expectations for the IPO’s performance, and the current uptick suggests a bullish outlook among investors. However, market experts caution that grey market premiums are not the sole determinant of an IPO’s success and advise investors to consider other factors as well.
By 3:00 PM on the third day of bidding, the Vraj Iron and Steel IPO had been subscribed 89.61 times overall, with the retail portion oversubscribed by 89.61 times, the NII segment by 175.37 times, and the QIB portion by 99.00 times. This strong subscription level highlights the confidence that investors have in the company’s prospects.
Both GEPL Capital and Ventura Securities have recommended a ‘subscribe’ rating for the Vraj Iron and Steel IPO. GEPL Capital lauded the company’s strong financial performance and strategic positioning in the steel industry, while Ventura Securities highlighted the company’s expansion plans and increased capacity. As always, investors are advised to conduct their own research and seek advice from certified experts before making any investment decisions.
