Vraj Iron and Steel IPO Day 2: Should you subscribe or not? Check GMP, review, key dates, subscription status, more.

While the class for non-institutional investors had 3.53 subscriptions, the conception for retail idiosyncratic investors earned 5.07 subscriptions. A full of 61% of qualified organization buyers (QIBs) were reserved.

Just 1 time anterior to the nationalist subscription play for its opening stock sale, Vraj Iron and Steel said connected Tuesday that it had garnered small implicit ₹51 crore from anchor investors.

Also Read: Vraj Iron and Steel IPO: GMP, subscription status, price, review, different details. Buy oregon not?

The archetypal nationalist offering of Vraj Iron and Steel has acceptable speech a 15% of its shares for non-institutional organization investors (NII), 50% of its shares for qualified organization buyers (QIB), and 35% of its shares for retail investors.

Under the Vraj brand, the steadfast produces sponge iron, M.S. Billets, and TMT bars. The steadfast present employs 52.93 acres of abstraction crossed 2 concern facilities, Raipur and Bilaspur successful Chhattisgarh. As of December 31, 2023, the company's accumulation installation successful Raipur additionally has a captive powerfulness works with an aggregate installed capableness of 5 MW.

It is tentative that connected Monday, July 1, the Vraj Iron and Steel IPO ground for stock allocation volition beryllium finalised. On Tuesday, July 2, the concern volition statesman refunds, and the shares volition beryllium deposited to the allottees' demat accounts the aforesaid time aft the refund. Vraj Iron and Steel stock terms is apt to beryllium listed connected BSE and NSE connected Wednesday, July 3.

Also Read: Vraj Iron and Steel IPO booked 3.47x connected archetypal bidding day. 10 cardinal risks investors should cognize earlier investing

Vraj Iron and Steel IPO Review

Master Capital Service Ltd

The brokerage claims that the concern is expanding its accumulation capableness from 2,31,000 TPA to 5,00,100 TPA and its captive powerfulness works capableness from 5 MW to 20 MW. While the MS billet enlargement is anticipated to beryllium completed by aboriginal FY26, the sponge robust and captive powerfulness works expansions are anticipated to beryllium completed by FY25. We suggest a semipermanent subscription to this IPO.

Dilip Davda, contributing exertion astatine Chittorgarh.com

The concern manufactures and markets sponge iron, TM Bars, and M S Billets. It experiments with effectual outgo power with its in-house powerfulness plants. It has truthful acold shown beardown results, and the steadfast is optimistic astir keeping up the existent trends aft expanding. Looking astatine the issue's annualised profits for FY24, it seems reasonably priced. According to contributing exertion astatine Chittorgarh.com, investors whitethorn thigh it up for mean to agelong term.

GEPL Capital 

Brokerage claims that the steadfast has shown coagulated fiscal show implicit the past 3 years, with CAGR maturation of 21%, 41%, and 69% for sales, EBITDA, and PAT. The emergence of infrastructure, urbanisation, and rising request from industries similar autos volition propel the alloy manufacture forward. The request for alloy is anticipated to proceed rising globally. 

Although India's per capita alloy depletion is little than the satellite average, it is expected to emergence sharply by 2031 acknowledgment to authorities initiatives and a 9–11% yearly maturation successful home request done 2026. The Bilaspur plant's enlargement plans are designed to instrumentality usage of the existent infrastructure successful bid to summation profitability and operational power passim the worth chain. Therefore, we counsel giving the contented a "Subscribe" rating.

Also Read: Vraj Iron and Steel IPO: Steel shaper raises ₹51.29 crore from anchor investors up of nationalist issue

Vraj Iron IPO details

Vraj Iron and Steel IPO, worthy ₹171 crore is wholly a caller contented of 8,260,870 equity share; determination is nary connection for merchantability (OFS) component, according to Red Herring Prospectus (RHP).

The institution plans to usage the proceeds from the IPO for wide firm operations and an enlargement task astatine the Bilaspur site.

The institution plans to usage the proceeds from the IPO for wide firm operations and an enlargement task astatine the Bilaspur site.

Also Read: Vraj Iron and Steel IPO opens tomorrow: GMP, contented details, 10 cardinal things to know

Vraj Iron and Steel IPO GMP today

Vraj Iron IPO GMP contiguous oregon Vraj Iron IPO grey marketplace premium is +85. This indicates Vraj Iron and Steel stock terms were trading astatine a premium of ₹85 successful the grey market, according to investorgain.com.

Considering the precocious extremity of the IPO terms set and the existent premium successful the grey market, the estimated listing terms of Vraj Iron and Steel stock terms was indicated astatine ₹292 apiece, which is 41.06% higher than the IPO terms of ₹207.

Today's IPO GMP indicates higher and anticipates a coagulated listing based connected the enactment of the grey marketplace implicit the past 9 sessions. Analysts astatine investorgain.com estimation that the lowest GMP is ₹20 and the maximum GMP is ₹85.

'Grey marketplace premium' indicates investors' readiness to wage much than the contented price.

Disclaimer: The views and recommendations supra are those of idiosyncratic analysts, experts and broking companies, not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 27 Jun 2024, 08:56 AM IST