Vraj Iron and Steel’s IPO Sees Overwhelming Response, Subscribed 19.9 Times
Vraj Iron and Steel’s public offering garnered an extraordinary response by the conclusion of bidding on June 28, owing to substantial interest from non-institutional and retail investors. According to subscription data from the exchanges, the Rs 171-crore IPO garnered bids for 12.2 crore equity shares, or 19.9 times the offer size of 61.4 lakh equity shares.
This IPO, which is exclusively a new issue with no offer-for-sale component, indicates that the whole proceeds will be used for the company’s expansion and operations.
Non-institutional investors were the most enthusiastic, subscribing 40 times their permitted quota, while individual investors followed closely behind, scooping up 22 times the reserved amount. Qualified institutional buyers (QIBs) bid for 91% of their allotted shares.
On June 25, a day before the IPO, Vraj Iron raised 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 business intends to use Rs 129.5 crore of the net proceeds from the new issue to fund the expansion project at its Bilaspur plant. The remaining monies will be allocated to general corporate purposes. Vraj Iron, which manufactures sponge iron, MS billets, and TMT bars under the brand name Vraj, now operates two factories in Raipur and Bilaspur, Chhattisgarh, with a total installed capacity of 2,31,600 tons annually.
The successful IPO demonstrates considerable market trust in Vraj Iron and Steel’s development potential and operational capabilities. Investors are optimistic about the company’s planned expansions and its potential to enhance production capacity and market presence.
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Source: MC