Vraj Iron and Steel IPO Day 2: Issue subscribed over 11 times, NIIs & retail investors lead

Vraj Iron and Steel IPO: The initial public offering (IPO) of Vraj Iron and Steel Limited has received a strong response, primarily from non-institutional investors (NIIs) and retail investors, on the second day of bidding.

The public issue was subscribed more than 11 times by 2:35 pm on Thursday, June 27. Investors bid for ₹6.93 crore shares as against ₹61.38 lakh shares on offer.

The part kept aside for NIIs was subscribed 18.26 times, while retail investors bid for 14.40 times the allotted quota. The qualified institutional buyers (QIBs) category was booked 0.68 times the reserved portion.

Ahead of the IPO, the company raised ₹51.3 crore in an anchor round from investors like Ashika Global Securities, Volrado Venture Partners Fund IV, Leading Light Fund VCC and Capri Global Housing Finance.

The IPO is solely a fresh issue of shares worth ₹171 crore without an offer-for-sale component.

The proceeds from the issue, which is open from June 26 to June 28, will be used for the expansion project at the Bilaspur plant and general corporate purposes. The price band has been fixed at ₹195-₹207 per equity share.

Vraj Iron and Steel IPO: Timeline

• Bidding dates: June 26-June 28
• Allotment finalisation: July 1
• Refund initiation: July 2
• Credit of shares: July 2
• Listing on the BSE and the NSE: July 3

About Vraj Iron and Steel Limited

Established in 2004, Vraj Iron and Steel produces TMT bars, sponge Iron, and MS Billets under the brand name Vraj. The company's products are sold to industrial customers and end-users directly or with the help of brokers and dealers.

With two manufacturing plants at Raipur and Bilaspur, Vraj Iron had an installed capacity of 2.31 lakh tons per annum as of December 31, 2023.

Between FY21 and FY23, the company saw a 21% compound annual growth (CAGR) rise in revenue and over 70% in net profit. Additionally, India's consumption of billets, sponge iron, and TMT bars is projected to increase at a CAGR of 7.5% to 8.5% between the financial year (FY) 2023-24 and FY26, which could benefit the firm.