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On the last day of bidding for the Vraj Iron and Steel IPO, the market has witnessed a strong response from investors, showcasing their confidence in the company. The IPO, which began on June 26, 2024, has seen a robust subscription rate, indicating positive market sentiment towards the sponge iron maker company.
With a price band of ₹195 to ₹207 per equity share, Vraj Iron and Steel aims to raise ₹171 crore from its public offer through the issuance of fresh shares. It has received overwhelming support from primary market investors, with stock market observers noting a grey market premium of ₹90, signaling a positive perception of the IPO’s potential.
As of 3:00 PM on the third day of bidding, the mainboard IPO was oversubscribed, with the retail segment showing strong interest at 89.61 times, NII segment at 175.37 times, and QIB portion at 99.00 times. Gepl Capital and Ventura Securities have both issued a ‘subscribe’ recommendation for the IPO, citing Vraj Iron and Steel’s strong financial performance, strategic location, and growth potential.
Moreover, brokerage firms such as Anand Rathi Research, Swastika Investmart, Arihant Capital Markets, SMIFS, Marwadi Financial Services, Master Capital Services, StoxBox, and GEPL Capital have all advised investors to subscribe to the issue for long-term gains.
Despite a grey market premium, experts believe that Vraj Iron and Steel’s expansion plans, capacity increases, and shift towards higher-margin products position the company for future growth and profitability. The IPO is set to conclude on June 28, with a tentative listing date of July 3 on both BSE and NSE. Investors are encouraged to consult with financial advisors before making investment decisions.
