The initial public offering of Vraj Iron and Steel will close today for subscription. The company has pegged the price band at ₹195-207, with a lot size of 72 equity shares and in multiples of 72 thereafter. The ₹171-crore IPO has been subscribed 16.93 times so far, as non-institutional investors (HNIs) and retail investors made aggressive bids.
Vraj Iron and Steel has set aside 15 per cent of the issue for non-institutional investors (NII), up to 50 per cent for qualified institutional buyers (QIB), and 35 per cent for retail investors.
While the retail investors’ portion was subscribed over 19.39 times and that of HNIs by 32.53 times, the QIB portion, on the other hand, was undersubscribed at 0.91 times.
The company will use the IPO proceeds for expansion projects at its Bilaspur facility and for general corporate purposes.
Vraj Iron and Steel is into manufacturing sponge iron, MS (Mid Steel) billets, and TMT (Thermo Mechanical Treatment) bars. It operates through two manufacturing plants in Chhattisgarh: Raipur and Bilaspur. After implementation of the expansion project, the company expects to increase its aggregate installed capacity from 2,31,600 tonne per annum (TPA) to 5,00,100 TPA and captive power plants’ aggregate installed capacity from 5 MW to 20 MW, the RHP noted.
As part of the IPO, Vraj Iron and Steel on Tuesday raised ₹51.30 crore from anchor investors by allotting 24,78,259 shares to six anchor investors at ₹207 apiece. Those who have been allocated shares are Volrado Venture Partners Fund IV, Capri Global Housing Finance, Ashika Global Securities, Rajasthan Global Securities, Leading Light Fund VCC - The Triumph Fund and Astorne Capital VCC - Arven.
Aryaman Financial Services is the sole book-running lead manager, while Bigshare Services is the registrar for the IPO. The company’s equity shares will be listed on the NSE and BSE.