Investors await final allotment of Vraj Iron and Steel IPO after strong subscription numbers
As the bidding period for the initial public offering (IPO) of Vraj Iron and Steel comes to a close, investors are eagerly anticipating the final allotment, expected to be finalized on Monday, July 1, 2024.
The ₹171 crore IPO was open for subscription from June 26 to June 28 at a price range of ₹195-207. According to reports from chittorgarh.com, shares of Vraj Iron and Steel Limited are trading at a premium of 75 percent in the grey market, indicating an estimated listing price of ₹282, a 36.23 percent premium over the issue price of ₹207.
The IPO witnessed overwhelming demand from investors, with subscription levels reaching 126.36 times the offer size. Non-Institutional Investors bid the most, oversubscribing the category by 221.66 times, followed by Qualified Institutional Buyers at 173.99 times. Retail investors also showed strong interest, subscribing 58.31 times the allotted shares.
The proceeds from the issue, a fresh offering of 0.83 crore shares, amounting to ₹171 crore, will be used for funding capital expenditure, loan repayments, and general corporate purposes. The minimum investment required for retail investors is ₹14,904 for a lot size of 72 shares.
Book running lead manager Aryaman Financial Services Limited and registrar Bigshare Services Pvt Ltd are overseeing the IPO process, which is set for listing on BSE and NSE on July 3, 2024. Vraj Iron and Steel Limited, established in 2004, operates manufacturing plants in Chhattisgarh and has shown impressive revenue and profit growth in recent years.
With most brokerages recommending subscribing to the IPO, investors are optimistic about the long-term growth prospects of Vraj Iron and Steel despite certain risks associated with the industry.
