Vraj Iron and Steel IPO day 2: Issue subscribed 4.6 times; retail, HNIs lead

Vraj Iron and Steel IPO day 2: Issue subscribed 4.6 times; retail, HNIs lead

Vraj Iron and Steel's public issue received good response on the second day of bidding, June 27, backed by retail and non-institutional investors. The Rs 171-crore IPO received bids for 2.8 crore equity shares, which were 4.6 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.

Retail investors took the lead amongst all kinds of investors, buying 6.5 times the allotted quota, while non-institutional investors jumped to second spot, picking 5.2 times the reserved portion. Qualified institutional buyers bid 61 percent shares of its 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.

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

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The price band for the initial public offering, which closes on June 28, has been fixed at Rs 195-207 per share.

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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