📷 Image Credits: The Economic Times
Vraj Iron and Steel, a company based in Raipur, made a modest stock exchange debut with shares listing at a 16% premium over the issue price. The shares started trading at Rs 240 on the NSE and BSE, marking a significant rise from the issue price of Rs 207. The company’s IPO saw substantial investor interest, with the public issue being subscribed over 100 times. Vraj Iron and Steel IPO was subscribed 126.36 times, reflecting strong market confidence in the company’s potential.
The initial public offering offered 5,782,609 shares but saw bidding for a staggering 73,07,12,160 shares, indicating high demand. The public issue was subscribed 58.31 times by retail investors, 173.99 times by Qualified Institutional Buyers (QIB), and 221.66 times by Non-Institutional Investors (NII) over the span of three days. The IPO price band was set at Rs 195 to Rs 207 per share.
The company, incorporated in 2004, manufactures products such as sponge iron, M.S. billets, and TMT bars, operating from two manufacturing plants in Raipur and Bilaspur, Chhattisgarh. Vraj Iron and Steel raised Rs 171 crore through the primary offering, with plans to utilize the net proceeds for the expansion project at the Bilaspur plant and for general corporate purposes.
Overall, the strong listing surge of Vraj Iron and Steel reflects robust investor confidence in the company’s growth prospects and operational potential. Despite risks such as regional facility concentration and the absence of long-term customer contracts, analysts advise cautious consideration amidst the promising outlook of the company in the Indian market.
