Vraj Iron and Steel makes positive debut, lists at 16% premium over IPO price

The price band of the Vraj IPO was set at Rs 195-207

Shares of a Vraj Iron and Steel made a bright start to its stock exchange debut after listing at Rs 240, a premium of 16 percent over the issue price of Rs 207 on July 03.

The listing gains, however, miss grey market estimates where shares were trading at a premium of over 24 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

The Rs 171-crore initial public offering (IPO) saw remarkable investor interest over three days, being subscribed 119.04 times. Leading the charge were non-institutional investors, who purchased 208.81 times their allotted quota. Qualified institutional buyers (QIBs) followed, subscribing to 163.9 times the reserved portion. Retail investors also showed significant interest, bidding 54.93 times their allotted portion.

A day before the issue opened, the company garnered Rs 51.3 crore from six anchor investors, including Volrado Venture Partners Fund IV, Ashika Global Securities, Capri Global Housing Finance, and Leading Light Fund VCC.

Incorporated in 2004, it manufactures sponge iron, M.S. billets, and TMT bars. The company operates two manufacturing plants in Raipur and Bilaspur, Chhattisgarh, covering a total of 52.93 acres.

The company will spend Rs 129.5 crore out of the net fresh issue proceeds mainly for the expansion project at the Bilaspur plant, and the remaining for general corporate purposes.