Vraj Iron and Steel IPO: The initial public offering (IPO) of Vraj Iron and Steel Ltd is set to close today, Friday, having a strong subscription rate so far. Till 10:06 am on the final day of bidding on Friday, the IPO received a 19.34 times subscription garnering 11,87,32,824 shares as against 61,38,462 shares on offer, according to the latest NSE data.
The quota for non-institutional investors received 38.66 times subscription while Retail Individual Investors (RIIs) portion got subscribed 21.59 times. The category for Qualified Institutional Buyers (QIBs) fetched 91 per cent subscription.
The Rs 171-crore IPO, which was opened for public subscription on Wednesday, was fully subscribed within the first hour of its opening.
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The Vraj Iron and Steel IPO allotment will likely be finalised on July 1, while its listing will take place on both BSE and NSE on July 3.
Its price band was fixed at Rs 195-Rs 207 per share.
Investors need to apply for a minimum of 72 equity shares and in multiples thereof. Hence, the minimum investment by retail investors would be Rs 14,904 (72 (lot size) x Rs 207 (upper price band)).
Vraj Iron and Steel IPO GMP Today
According to market observers, unlisted shares of Vraj Iron and Steel Ltd are trading Rs 90 higher in the grey market as compared with its issue price. The Rs 90 grey market premium or GMP means the grey market is expecting a 43.48 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
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Vraj Iron and Steel IPO: Should You Subscribe?
Giving ‘Subscribe for long term’ recommendation to the IPO, brokerage firm Mastertrust in a note said, “The company is in the process of increasing their capacity from 2,31,000 TPA to 5,00,100 TPA for manufacturing and 5 MW to 20 MW for their captive power plant. The expansions for sponge iron and captive power plant are expected to be ready by fy25 whereas the expansion for MS billets will be ready by early next fY26. We advise to Subscribe to this IPO for long term.”
Another brokerage Swastika in its note also said, “The IPO’s P/E valuation of 9.48x appears reasonable. Considering the potential for long-term growth and the possibility of modest listing gains, we recommend a subscribe rating for this IPO.”
Vraj Iron and Steel IPO: Strengths and Risks
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
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Vraj Iron and Steel IPO: Should You Subscribe?
Giving ‘Subscribe for long term’ recommendation to the IPO, brokerage firm Mastertrust in a note said, “The company is in the process of increasing their capacity from 2,31,000 TPA to 5,00,100 TPA for manufacturing and 5 MW to 20 MW for their captive power plant. The expansions for sponge iron and captive power plant are expected to be ready by fy25 whereas the expansion for MS billets will be ready by early next fY26. We advise to Subscribe to this IPO for long term.”
Another brokerage Swastika in its note also said, “The IPO’s P/E valuation of 9.48x appears reasonable. Considering the potential for long-term growth and the possibility of modest listing gains, we recommend a subscribe rating for this IPO.”
Vraj Iron and Steel IPO: Strengths and Risks
