Vraj Iron and Steel IPO: The IPO of Vraj Iron and Steel opens for subscription on Wednesday, June 26. The issue will remain open for three trading days, until Friday, June 28 from 10 am to 5 pm.
Investors and industry observers alike are eagerly awaiting the Initial Public Offering (IPO) of Vraj Iron and Steel, a prominent player in the steel manufacturing sector. With preparations underway for this significant financial event, stakeholders are keenly interested in understanding the details that surround Vraj Iron and Steel’s journey to the public market.
Company Overview: Vraj Iron and Steel’s Path to IPO
Vraj Iron and Steel, known for its robust presence in the steel industry, is set to make its debut on the stock market through an IPO. The company’s journey has been marked by steady growth and strategic expansion, bolstering its position as a key player in the manufacturing and distribution of steel products.
IPO Details: Offering Size and Price Range
The IPO of Vraj Iron and Steel is expected to include a specific number of shares, aimed at raising capital for various growth initiatives and operational expansions. The price range per share will be determined based on market conditions and investor demand, reflecting the company’s valuation and potential for future growth.
The IPO of Vraj Iron and Steel is solely a fresh issue with no offer-for-sale component. The company will use the proceeds for the Bilaspur facility expansion project and general corporate purposes.
Raipur-based Vraj Iron and Steel Ltd. aims to raise ₹171 crore through its initial public offering (IPO), opening for public subscription on Wednesday, June 26. The three-day initial share sale will end on Friday, June 28, while bidding for anchor investors starts today.
Ahead of the issue opening, the company’s shares are trading at a ₹53 premium in the grey market today.
The grey market is an unofficial ecosystem where shares trade before IPO allotment and continue till listing day. Most investors track the GMP to gauge the listing price.
The company will sell shares between ₹195 and ₹207 per share, with investors able to bid for a minimum of 72 equity shares per lot and in multiples thereof.
The public issue is only a fresh issue with no offer-for-sale component.
Proceeds will fund the Bilaspur facility expansion project and general corporate purposes.
Vraj Iron and Steel manufactures sponge iron, MS billets, and TMT bars.
The company operates two manufacturing plants in Raipur and Bilaspur, Chhattisgarh.
After the expansion project, the company expects to increase its aggregate installed capacity from 231,600 TPA to 500,100 TPA and captive power plants’ capacity from 5 MW to 20 MW.
For the year ending March FY23, the company posted an 88% year-on-year net profit growth at ₹54 crore on healthy operating numbers. Revenue from operations rose 24.5% to ₹515.7 crore from the previous year.
Aryaman Financial Services is the sole book-running lead manager for the IPO, while Bigshare Services is the registrar. The equity shares are proposed to be listed on both the NSE and BSE.
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