Vraj Iron and Steel IPO Listing Tomorrow: What GMP and Subscription Status Say About Expected Share Price

Vraj Iron and Steel is set to list its shares tomorrow, Wednesday, 3rd July 2024. The IPO allotment was finalised on Monday, 1st July, and shares will be credited to the demat accounts of successful applicants today, 2nd July. Those who didn’t get shares will receive refunds today as well.

Subscription Success

The IPO saw a massive response, with a subscription rate of 119 times on the final bidding day, Friday, 28th June. Breakdown of subscriptions:

• Non-Institutional Investors (NII): 208.81 times
• Qualified Institutional Buyers (QIB): 163.90 times
• Retail Investors: 54.93 times

On 25th June, Vraj Iron and Steel raised over ₹51 crore from anchor investors. The shares were offered between ₹195 and ₹207 each.

Allocation of Shares

• Non-Institutional Investors (NII): 15%
• Qualified Institutional Buyers (QIB): 50%
• Retail Investors: 35%

Company Background

Vraj Iron and Steel, based in Raipur, Chhattisgarh, manufactures TMT bars, MS billets, and sponge iron. It operates production plants in Raipur and Bilaspur.

Grey Market Premium (GMP)

The IPO is generating excitement in the grey market, with a premium of ₹67 today, indicating a price 32.37% higher than the IPO’s upper band price of ₹207. Analysts expect the shares to list at around ₹274 each, based on this premium. GMP has ranged from ₹20 to ₹90 over the past 14 sessions.

Use of Proceeds

The ₹171 crore raised through the IPO will fund general corporate activities and an expansion project at the Bilaspur plant.

Investor interest in Vraj Iron and Steel is high, as evidenced by the substantial GMP and strong subscription rates. Tomorrow’s listing is expected to reflect this enthusiasm with a solid debut price.