Vraj Iron and Steel IPO: Today, the initial public offering bidding has commenced for Vraj Iron and Steel, and it will remain open for subscription until June 28, 2024. During this period, from Wednesday to Friday this week, investors can participate. The Initial Public Offering price range for Vraj Iron and Steel has been set at ₹195 to ₹207 per equity share. The company aims to raise ₹171 crore through this offering, which consists entirely of fresh issue shares. Notably, Vraj Iron and Steel shares have already started trading in the grey market on the IPO’s opening date, commanding a 26% premium, as reported by stock market analysts.
Status of Vraj Iron and Steel’s IPO subscription
By 11:09 AM on the first day of bidding, the book build issue for Vraj Iron and Steel Initial Public Offering was oversubscribed by 0.84 times. The retail portion of the public issue was oversubscribed by 1.47 times, while the Non-Institutional Investor (NII) portion saw a subscription of 0.49 times.
Key details of the Vraj Iron and Steel Initial Public Offering
1. GMP to Vraj Iron & Steel IPO
According to market observers, shares of the sponge iron manufacturer company are currently trading at a ₹54 premium in the grey market today.
2. Price toVraj Iron & Steel IPO
The company has set the price band for the initial offer at ₹195 to ₹207 per equity share.
3. Date to Vraj Iron & Steel IPO
The book build issue commenced today and will continue until June 28, 2024.
4. Size to Vraj Iron & Steel IPO
The company aims to raise ₹171 crore through this entirely fresh issue.
5. Lot size to Vraj Iron & Steel IPO
A bidder can apply for lots where each lot consists of 72 company shares
6. Investment limit to Vraj Iron & Steel IPO
A bidder will need a minimum of ₹14,904 (₹207 per share multiplied by 72 shares) to apply for the book build issue.
7. Allotment date to Vraj Iron & Steel IPO
Share allocation is expected to take place on Monday, July 1st, 2024.
8. Register to Vraj Iron & Steel IPO
Bigshare Services Private Limited has been designated as the registrar for the Vraj Iron and Steel Initial Public Offering.
9. Listing date to Vraj Iron & Steel Initial Public Offering
The book build issue is scheduled to be listed on both BSE and NSE. Following the ‘T+3’ listing rule, the anticipated listing date for the Vraj Iron and Steel Initial Public Offering is July 3rd, 2024.
Should you buy the Vraj Iron and Steel Initial Public Offering?
According to Avinash Gorakshkar, Head of Research at Profitmart Securities, regarding the Vraj Iron and Steel IPO’s impact on primary market investors: “The company operates in commodities and is being offered at slightly elevated valuations. The expansion of its capacity is a positive indicator. Given the robust secondary market conditions and optimistic primary market sentiment, investors may consider applying for the mainboard issue primarily for potential listing gains.”
Also, Read: DEE Development Engineers’ IPO
Swastika Investmart has recommended a ‘subscribe’ tag for the mainboard issue of Vraj Iron and Steel, noting, “The company has demonstrated consistent financial performance over the past three years, emphasizing profitability. However, investors should carefully consider some key risks. These include the company’s reliance on manufacturing facilities in a single region without long-term customer contracts, as well as the competitive nature of the steel industry and vulnerability to supply disruptions and raw material price fluctuations. Despite these challenges, the IPO’s P/E valuation of 9.48x appears reasonable. Given the potential for long-term growth and the opportunity for modest listing gains, we suggest subscribing to this IPO.”
Disclaimer: Stockeasynow does not endorse the opinions or suggestions expressed above; rather, they represent the opinions of certain analysts, specialists, and broking firms. It is recommended that investors consult with qualified specialists before making any financial decisions.
