Vraj Iron IPO shares: On this day, Wednesday, July 03, shares of Vraj Iron and Steel Ltd. are scheduled to debut on Dalal Street. The company is expected to list at a significant premium at the bourses given the conflicting feelings of the listed markets, if one is to believe the signals from the grey market premium (GMP).
Shares of Vraj Iron and Steel were fetching a grey market premium of Rs 50 a share before to listing, indicating to investors a 24 per cent listing pop. Nonetheless, the GMP was Rs 67–70 a piece the day before and Rs 75–80 per piece at the end of the bidding.
According to Amit Goel, co-founder and chief global strategist of Pace 360, Vraj Iron and Steel has so far showed promising outcomes and is hopeful about maintaining this trend after growing. “When taking into account the annualized earnings for FY24, the issue appears to be properly valued.We anticipate a listing gain of over 33% at a price of about Rs 275-285 per share,” he continues.
With a lot size of 72 shares, the Vraj Iron and Steel IPO was offered in the price range of Rs 195–207 per share. Bidding on the issue was open from June 26 to June 28. The primary offering of the Raipur-based company raised 171 crore, all of which came from the sale of new equity shares at Rs 82,60,870.
There is a significant premium on the grey market due to Vraj Iron & Steel. According to Shivani Nyati, Head of Wealth at Swastika Investmart, this spike is consistent with the issue’s exceptional subscription status, which highlights investor confidence in the business’s prospects.
“The financial performance of the organization presents a favorable image. For the last three years, Vraj Iron & Steel has demonstrated its ability to produce good returns with a track record of steady profitability. Strong fundamentals, great subscription, and fair values all point to a solid offering with substantial rewards for early investors, the spokesperson added.
Overall, a fantastic 119.04 times were subscribed to the issue. A remarkable 163.90 times were reserved for qualified institutional bidders (QIBs). There were 208.81 subscriptions to the non-institutional investor quota. Throughout the course of the three-day bidding procedure, there were 54.93 bids on the sections designated for retail investors.
In June 2004, Vraj Iron and Steel was incorporated and now produces TMT bars, MS Billets, and sponge iron under the Vraj brand. The product portfolio of the company includes items that are marketed to both industrial and end-users, including Sponge Irons, TMT Bars, MS Billets, and by-products Dolochar, Pellets, and Pig Iron.
Participants in all categories showed a significant desire for Vraj Iron and Steel. Parth Shah, Research Analyst at StoxBox, stated, “We anticipate shares to list at a premium of roughly 35% to its issue price of Rs 207 per share.” “We are optimistic about the company and recommend that those who have been allocated shares retain them for the medium to long term,” he stated.
Brokerage firms recommended that investors subscribe to the issue, with the majority of them being positive. The registrar for the Vraj Iron and Steel IPO is Bigshare Services, while the book running lead manager for the offering is Aryaman Financial Services. The company’s shares will be listed on the NSE and BSE.
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