Vraj Iron and Steel IPO listing: Shares list at 15.9% premium to issue price on NSE & BSE

Vraj Iron and Steel shares made a decent debut on the stock exchanges on Wednesday, July 3. The stock opened at a premium of 15.9% at ₹240 apiece against issue price on the National Stock Exchange (NSE) and the BSE.

The public issue, open from June 26 to June 28, received a good response from investors, with the IPO being subscribed 119 times. The company received bids for 73.07 crore equity shares against 61.39 lakh shares on offer.

The non-institutional investors (NIIs) portion was subscribed 208.81 times the allotted quota, while retail investors fetched 54.93 times subscription. The part set aside for qualified institutional buyers (QIBs) was booked 163.90 times.

Prior to the IPO, the company had raised a little over ₹51 crore from anchor investors, including Ashika Global Securities, Volrado Venture Partners Fund IV, Capri Global Housing Finance, Astorne Capital VCC-ARVEN, Leading Light Fund VCC-The Triumph Fund, and Rajasthan Global Securities.

The public offer is entirely a fresh issuance of equity shares without any offer-for-sale component.

The proceeds generated from the IPO will be utilised for enlargement initiatives at the company's Bilaspur facility in Chhattisgarh. It will also be used for general corporate purposes.

Vraj Iron and Steel shares were available to investors in the range of ₹195 to ₹207 per scrip.

About Vraj Iron and Steel

Vraj Iron and Steel produces mid-steel billets, thermo mechanical treatment (TMT) bars and sponge iron. It has two manufacturing facilities in Chhattisgarh, Bilaspur and Raipur.

The company witnessed a compound annual growth rate (CAGR) of 70% in profits and 21% growth in revenue from operations.

Domestic consumption of TBT bars, billets, and sponge iron is expected to surge at 7.5% to 8.5% CAGR, which could benefit the company.

Aryaman Financial Services is the lone book-running lead manager for the IPO, while Bigshare Services is the registrar.