Vraj Iron and Steel IPO: GMP, subscription status, price, review, other details. Buy or not?

Vraj Iron and Steel IPO: Bidding for the initial public offering (IPO) has opened today, and Vraj Iron and Steel IPO subscription will remain open till 28th June 2024. This means Vraj Iron and Steel IPO will remain open from Wednesday to Friday this week. The sponge iron maker company has fixed Vraj Iron and Steel IPO price at ₹195 to ₹207 per equity share. The company aims to raise ₹171 crore from this initial offer, which is 100 percent a fresh issue. On the issue opening date, Vraj Iron and Steel shares have already begun trading in the grey market. According to stock market observers, Vraj Iron and Steel Limited shares are available at a premium of ₹26 percent in the grey market today.

Vraj Iron and Steel IPO subscription status

By 3:42 PM on day one of bidding, the book build issue was booked 2.58 times, the retail protion of the public issue was booked 4.19 times whereas the NII portion got subscribed 2.17 times.

Important Vraj Iron and Steel IPO details

1] Vraj Iron and Steel IPO GMP: Shares of the sponge iron manufacturer company are available at a premium of ₹54 in the grey market today, say market observers.

2] Vraj Iron and Steel IPO price: The company has fixed price band of the initial offer at ₹195 to ₹207 per equity share.

3] Vraj Iron and Steel IPO date: The book build issue opened today and will remain open until 28 June 2024.

4] Vraj Iron and Steel IPO size: The company aims to generate ₹171 crore from this completely fresh issue.

5] Vraj Iron and Steel IPO lot size: A bidder can apply for lots; one lot comprises 72 company shares.

6] Vraj Iron and Steel IPO investment limit: A bidder will require at least ₹14,904 ( ₹207 x 72) to apply for the book build issue.

7] Vraj Iron and Steel IPO allotment date: Share allocation is most likely on Monday, July 1st, 2024.

8] Vraj Iron and Steel IPO registrar: Bigshare Services Private Limited has been appointed the official Vraj Iron and Steel IPO registrar.

9] Vraj Iron and Steel IPO listing date: The book build issue is proposed for listing on BSE and NSE. In the wake of the 'T+3' listing rule, the Vraj Iron and Steel IPO listing date is most likely on July 3rd, 2024.

Vraj Iron and Steel IPO: uy or not?

On whether Vraj Iron and Steel IPO is good or bad for the primary market investors, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "The company is a commodity company, and it has been offered at slightly higher valuations. The company is increasing its capacity, which is a good sign from its perspective. However, looking at the strong secondary market trend and upbeat primary market, one can only apply for the mainboard issue for the listing gains."

Giving a 'subscribe' tag to the mainboard issue, Swastika Investmart said, “Vraj Iron and Steel boasts a record of consistent financial performance over the past three years, with a strong focus on profitability. However, some key risks require careful consideration. The company's manufacturing facilities are concentrated in a single region and lack long-term customer contracts. Additionally, the steel industry is highly competitive, and Vraj Iron and Steel is susceptible to supply disruptions and raw material price fluctuations. Despite these risks, the IPO's P/E valuation of 9.48x appears reasonable. Considering the potential for long-term growth and the possibility of modest listing gains, we recommend a subscribe rating to this IPO.”

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.