Vraj Iron and Steel’s initial public offering (IPO) garnered significant investor interest by the closing day of bidding on June 28. The Rs 171-crore IPO received bids for 12.2 crore equity shares, which was nearly 20 times higher than the offer size of 61.4 lakh equity shares, as per data from exchanges.
This IPO comprises solely of a fresh issue with no offer-for-sale component, ensuring that all proceeds will directly benefit the company. Non-institutional investors led the charge, oversubscribing their quota by 40 times, while retail investors followed closely with a subscription of 22 times their reserved portion. Qualified institutional buyers bid for 91% of their allocated shares.
Prior to the IPO opening, Vraj Iron secured 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 plans to utilize Rs 129.5 crore from the net proceeds primarily for expanding operations at its Bilaspur plant, with the remainder allocated for general corporate purposes.
Vraj Iron, known for manufacturing sponge iron, MS billets, and TMT bars under the brand Vraj, currently operates facilities in Raipur and Bilaspur, Chhattisgarh, boasting an installed capacity of 2,31,600 tons per annum.
