Vraj Iron and Steel's public issue received a great response by the last day of bidding, June 28, backed by non-institutional investors (HNIs) and qualified institutional buyers (QIBs). The Rs 171-crore IPO received bids for over 73.07 crore equity shares, which were 119.04 times higher than the offer size of 61.4 lakh equity shares, the subscription data on the exchanges showed.
The IPO consists of only a fresh issue with no offer-for-sale component. Hence, the entire issue proceeds will be utilised for the company itself.
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Non-institutional investors took the lead amongst all kinds of investors, buying 208.81 times the allotted quota, while QIBs jumped to the second spot, picking 163.9 times the reserved portion. Retail investors bid 54.93 times their allotted portion.
On June 25, a day before the issue opening, Vraj Iron mobilised 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.
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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.
Vraj Iron, which manufactures sponge iron, MS billets, and TMT bars under the brand Vraj, currently operates through two plants at Raipur and Bilaspur in Chhattisgarh, with an installed capacity of 2,31,600 tons per annum.
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