Vraj Iron and Steel IPO opens tomorrow: GMP, issue details, 10 key things to know

Vraj Iron and Steel IPO opens for subscription tomorrow (Wednesday, June 26). Under the Vraj brand, the firm produces sponge iron, M.S. Billets, and TMT bars. The firm now employs 52.93 acres of space across two industrial facilities, Raipur and Bilaspur in Chhattisgarh. As of December 31, 2023, the company's production facility in Raipur additionally has a captive power plant with an aggregate installed capacity of 5 MW.

The company is currently expanding the capacities of its current manufacturing facilities and captive power plant. This is anticipated to raise the combined installed capacity of these facilities—which includes both intermediate and final products—from 2,31,600 TPA to 5,00,100 TPA and the combined installed capacity of the captive power plant from 5 MW to 20 MW.

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The firm serves both industrial and end-user clients with its product lines, which include Sponge Iron, TMT Bar, MS Billets, and its by-products, Dolochar, Pellet, and Pig Iron.

Vijay Anand Jhanwar, V. A. Transport Private Limited, and Gopal Sponge and Power Private Limited are the company's promoters.

Between March 31, 2022, and March 31, 2023, Vraj Iron and Steel Limited's profit after tax (PAT) climbed by 88.12% while its revenue increased by 24.87%.

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Here are the 10 key things to know about Vraj Iron and Steel IPO:

Vraj Iron IPO date: Vraj Iron and Steel IPO opens for subscription on Wednesday, June 26, and closes on Friday, June 28.

Vraj Iron IPO price band: Vraj Iron and Steel IPO price band has been fixed in the range of ₹195 to ₹207 per equity share of face value of ₹10.

Vraj Iron IPO lot size: Vraj Iron and Steel IPO lot size is 72 equity shares and in multiples of 72 equity shares thereafter.

Anchor investors: The allocation to anchor investors for Vraj Iron and Steel IPO is scheduled to take place today (Tuesday, June 25).

Vraj Iron IPO details: Vraj Iron and Steel IPO, worth ₹171 crore is completely a fresh issue of 8,260,870 equity share; there is no offer for sale (OFS) component, according to Red Herring Prospectus (RHP).

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Vraj Iron IPO objective: The company plans to use the proceeds from the IPO for general corporate operations and an expansion project at the Bilaspur site.

Vraj Iron IPO listing date and allotment details: It is tentative that on Monday, July 1, the Vraj Iron and Steel IPO basis for share allocation will be finalized. On Tuesday, July 2, the business will begin refunds, and the shares will be deposited to the allottees' demat accounts the same day after the refund. Vraj Iron and Steel share price is likely to be listed on BSE and NSE on Wednesday, July 3.

Lead Manager and Registrar of Vraj Iron and Steel IPO: The sole book running lead manager is Aryaman Financial Services, and the IPO registrar is Bigshare Services.

Vraj Iron IPO reservation: The initial public offering of Vraj Iron and Steel has set aside a 15% of its shares for non-institutional institutional investors (NII), 50% of its shares for qualified institutional buyers (QIB), and 35% of its shares for retail investors.

Vraj Iron and Steel IPO GMP today: Vraj Iron IPO GMP today is +53. This indicates Vraj Iron and Steel share price were trading at a premium of ₹53 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Vraj Iron and Steel share price was indicated at ₹260 apiece, which is 25.6% higher than the IPO price of ₹207.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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