Vraj Iron and Steel IPO subscribed nearly 40 times so far on last day. Check GMP and other details
Synopsis
Analysts advised investors to subscribe to the Vraj Iron and Steel IPO as the company's well-established and strategically located manufacturing facilities, coupled with a focus on value-added products and ongoing expansion plans, position it for future growth. The company's shares are trading with a premium of Rs 90 in the unlisted market,
The company proposes to utilise the net proceeds towards funding for its capital expenditure requirement towards the expansion of the project at Bilaspur Plant estimated to be at Rs 164.50 crore and the balance amount towards general corporate purposes.
Vraj Iron has already deployed a 70 crore loan from HDFC Bank, proposed to be repaid from the net proceeds of the IPO. For the balance amount of Rs 94.5 crore, the company has already deployed Rs 32 crore from internal accruals and further wishes to deploy Rs 3 crore from internal accruals.
Vraj Iron and Steel GMP
In the unlisted market, the company's shares are trading with a premium of Rs 90.
Vraj Iron and Steel IPO review
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Vraj Iron and Steel IPO price band
About 50% of the offer is available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs), 15% for non-institutional investors and the rest 35% for retail investors.
Other details
Chhattisgarh-based Vraj Iron and Steel manufactures Sponge Iron, M S Billets, and TMT bars under the brand Vraj. The company currently operates through two manufacturing plants located at Raipur and Bilaspur in Chhattisgarh spread across 52.93 acres.
As of March 2023, the aggregate installed capacity of its manufacturing plants was 2.31 lakh tons per annum. Its product offerings such as Sponge Iron, TMT Bar, MS Billets, and by-products Dolochar, Pellet, and Pig Iron cater to a mix of customers that consist of industrial customers and end-users.
Aryaman Financial Services is the book-running lead manager for the IPO.
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