Shares of Vraj Iron and Steel made a decent Dalal Street debut on Wednesday, July 03 as the stock was listed at Rs 240 apiece on both the exchanges, BSE and NSE, a premium of 15.94 per cent over its issue price of Rs 207 per share.
However, the listing did not meet the expectations of the investors on the debut. Ahead of its listing, shares of Vraj Iron and Steel were commanding a grey market premium of Rs 50 apiece, suggesting a listing pop of 24 per cent to the investors. However, the GMP stood at Rs 67-70 apiece a day earlier.
The IPO of Vraj Iron and Steel was sold in the price band of Rs 195-207 per share with a lot size of 72 shares. The issue was open for bidding between bidding June 26 and June 28. The Raipur-based company raised 171 crore via its primary offering, which entirely included a fresh share sale of Rs 82,60,870 equity shares.
The issue was overall subscribed a stellar 119.04 times. The quota for qualified institutional bidders (QIBs) was booked a stellar 163.90 times The quota for non-institutional investors was subscribed 208.81 times. The portions reserved for retail investors saw bidding for 54.93 times during the three-day bidding process.
Vraj Iron and Steel, incorporated in June 2004, manufactures Sponge Iron, MS Billets, and TMT bars under the brand Vraj. The company's product portfolio comprises offerings such as Sponge Irons, TMT Bars, MS Billets, and by-products Dolochar, Pellets, and Pig Iron, which cater to a mix of industrial customers and end-users.
Brokerage firms were mostly positive on the issue, suggesting investors to subscribe to it. Aryaman Financial Services is the book running lead manager of the Vraj Iron and Steel IPO, while Bigshare Services is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.