2 days ago
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As the last day of bidding for the archetypal nationalist offering (IPO) of Vraj Iron and Steel comes to an end, investors person present shifted their absorption connected the allotment, which is apt to beryllium finalised connected Monday, July 1, 2024.
The ₹171 crore contented was unfastened for subscription betwixt June 26-28 astatine a terms set successful the scope of ₹195-207.
According to chittorgarh.com, Vraj Iron and Steel Limited shares are disposable astatine a premium of ₹75 percent successful the grey marketplace today. This indicates an estimated listing terms astatine ₹282, a 36.23 percent premium versus the contented terms of ₹207. The GMP remained unchanged successful the erstwhile league connected June 28, 2024, but was higher astatine ₹90 connected June 27, 2024.
The IPO witnessed overwhelming capitalist demand. In the 3 days of bidding, it was subscribed 126.36 times. Investors bid for 73.07 crore shares arsenic against 57.82 lakh connected offer. The Non-Institutional Investors class was bid the most, 221.66 times followed by the Qualified Institutional Buyers (QIB) information astatine 173.99 times. Meanwhile, the retail capitalist portion witnessed 58.31 times subscription.
Vraj Iron and Steel IPO Details
The contented is wholly a caller contented of 0.83 crore shares worthy ₹171 crore. The institution proposes to utilise the Net Proceeds for 1) Funding for Capital Expenditure towards the "Expansion Project" astatine Bilaspur Plant, 2) Repayment oregon prepayment of borrowings from HDFC Bank obtained by the institution for the superior expenditure towards the "Expansion Project" astatine Bilaspur Plant, 3) Capital expenditure towards the "Expansion Project" astatine Bilaspur Plant, and 4) General Corporate Purposes.
The minimum batch size for an exertion is 72 Shares. The minimum magnitude of concern required by retail investors is ₹14,904.
The contented has reserved 35 percent of its connection size for NIIs, 20 percent for QIBs and 15 percent for retail investors. Meanwhile, 30 percent of the contented has been reserved for anchor investors.
Aryaman Financial Services Limited is the publication moving pb manager of the Vraj Iron and Steel IPO, portion Bigshare Services Pvt Ltd is the registrar for the issue.
The publication physique contented is projected for listing connected BSE and NSE. connected July 3, 2024.
Incorporated successful June 2004, Vraj Iron and Steel Limited manufactures Sponge Iron, M.S. Billets, and TMT bars nether the marque Vraj. The institution runs 2 manufacturing plants successful Raipur and Bilaspur, Chhattisgarh. Its merchandise portfolio comprises offerings specified arsenic Sponge Irons, TMT Bars, MS Billets, and by-products Dolochar, Pellets, and Pig Iron, which cater to a premix of concern customers and end-users.
Vraj Iron and Steel Limited's gross accrued by 24.87 percent and nett aft taxation (PAT) roseate by 88.12 percent betwixt the fiscal twelvemonth ending with March 31, 2023 and March 31, 2022.
Most brokerages had recommended subscribing to the IPO.
Swastika Investmart has recommended a "subscribe" standing to the mainboard contented of Vraj Iron and Steel, highlighting the company's robust fiscal show implicit the past 3 years with a beardown absorption connected profitability. However, they caution imaginable investors to see definite risks. These see the attraction of manufacturing facilities successful a azygous portion and the lack of semipermanent lawsuit contracts. Moreover, operating successful the competitory alloy manufacture exposes Vraj Iron and Steel to proviso disruptions and fluctuations successful earthy worldly prices. Despite these challenges, the IPO's price-to-earnings (P/E) valuation of 9.48x is deemed reasonable. Swastika Investmart suggests subscribing to the IPO, citing imaginable for semipermanent maturation and the anticipation of humble listing gains.
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