Vraj Iron and Steel Stock Debuts at 16% Premium on BSE and NSE

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Vraj Iron and Steel Shares Debut with a 16% Premium on Market Listing

Team FS

03/Jul/2024

Key Points:

Vraj Iron and Steel shares listed at a 16% premium over the issue price of Rs 207 per share.

The IPO was sold in the price band of Rs 195-207 per share and was subscribed 119.04 times.

The company raised Rs 171 crore through the IPO, entirely from a fresh share sale.

Vraj Iron and Steel made a notable debut on Dalal Street on Wednesday, July 03, with its shares listing at Rs 240 apiece on both the BSE and NSE. This price represents a 15.94% premium over its issue price of Rs 207 per share, indicating a positive market reception despite not meeting initial investor expectations. Prior to the listing, shares of Vraj Iron and Steel were commanding a grey market premium (GMP) of Rs 50 apiece, suggesting a potential listing pop of 24%. However, a day before the listing, the GMP had risen to Rs 67-70 apiece.

The Initial Public Offering (IPO) of Vraj Iron and Steel was available in the price band of Rs 195-207 per share with a lot size of 72 shares. The bidding for the IPO was open from June 26 to June 28. The Raipur-based company successfully raised Rs 171 crore through this primary offering, which was entirely comprised of a fresh share sale amounting to 82,60,870 equity shares.

The IPO received an overwhelming response, being subscribed a stellar 119.04 times overall. The quota reserved for qualified institutional bidders (QIBs) saw an exceptional subscription rate of 163.90 times. Non-institutional investors subscribed their quota 208.81 times, and the portion reserved for retail investors witnessed bids amounting to 54.93 times during the three-day bidding process.

Vraj Iron and Steel, incorporated in June 2004, specializes in the manufacturing of Sponge Iron, MS Billets, and TMT bars under the brand name Vraj. The company's product portfolio includes Sponge Irons, TMT Bars, MS Billets, and by-products such as Dolochar, Pellets, and Pig Iron. These products cater to a diverse mix of industrial customers and end-users, positioning Vraj Iron and Steel as a key player in the iron and steel manufacturing sector.

The successful listing of Vraj Iron and Steel shares, despite not meeting the heightened expectations suggested by the grey market premium, reflects the robust demand and confidence in the company’s growth prospects. The funds raised through the IPO are expected to fuel further expansion and development of the company’s operations, reinforcing its market presence and enhancing production capacities.

As the stock continues to trade on the BSE and NSE, investors and market watchers will closely monitor its performance, looking for cues on broader market trends and the economic environment. The strong subscription rates across different investor categories underscore the broad-based interest and support for Vraj Iron and Steel, signaling a positive outlook for the company's future endeavors.

In conclusion, the market debut of Vraj Iron and Steel at a 16% premium is a significant milestone for the company. Despite the stock not meeting the most optimistic expectations, the successful IPO and subsequent listing demonstrate the strong demand and investor confidence in the company's offerings and growth potential. The funds raised will play a crucial role in furthering the company’s expansion plans and solidifying its position in the competitive iron and steel industry.

The Upcoming IPOs in this week and coming weeks are Ambey Laboratories Limited, Effwa Infra & Research Limited, Ganesh Green Bharat Limited.

The current active IPO is Emcure Pharmaceuticals Limited, Bansal Wire Industries Limited.

The Recently Listed IPOs which is available for trading in stock Market are Diensten Tech Limited, Vraj Iron and Steel Limited, Divine Power Energy Limited, Akiko Global Services Limited, Petro Carbon & Chemicals Limited, Visaman Global Sales Limited, Mason Infratech Limited, Sylvan Plyboard (India) Limited, SHIVALIC POWER CONTROL, Allied Blenders and Distillers, Stanley Lifestyles Limited, Medicamen Organics Limited, EnNutrica (Dindugal Farm Product) IPO, Winny Immigration and Education Services Limited, GP Eco Solutions India Limited ,United CotFab Limited, LE TRAVENUES TECHNOLOGY LIMITED (ixigo), Awfis Space Solutions IPO, Go Digit IPO, Vilas Transcore IPO, GSM Foils IPO, Rulka Electricals IPO, HOAC FOODS INDIA IPO, Aadhar Housing Finance IPO.

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Vraj Iron and Steel Shares Debut with a 16% Premium on Market Listing

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