Vraj Iron and Steel IPO subscribed nearly 40 times so far on last day. Check GMP and other details
The category reserved for non-institutional investors was subscribed the most at 94 times, followed by retail investors at 34 times and QIB investors at just over 9 times.
The company proposes to utilise the net proceeds towards funding for its capital expenditure requirement towards the expansion of the project at Bilaspur Plant estimated to be at Rs 164.50 crore and the balance amount towards general corporate purposes.
Vraj Iron has already deployed a 70 crore loan from HDFC Bank, proposed to be repaid from the net proceeds of the IPO. For the balance amount of Rs 94.5 crore, the company has already deployed Rs 32 crore from internal accruals and further wishes to deploy Rs 3 crore from internal accruals.
Vraj Iron and Steel GMP
In the unlisted market, the company's shares are trading with a premium of Rs 90.
Vraj Iron and Steel IPO review
Analysts advised investors to subscribe to the IPO as the company's well-established and strategically located manufacturing facilities, coupled with a focus on value-added products and ongoing expansion plans, position it for future growth.
«The IPO's P/E valuation of 9.48x appears reasonable. Considering the potential for long-term growth and the possibility of modest listing gains, we recommend a subscribe rating,» said Swastika Investmart.
Vraj Iron and Steel IPO price band
The company has fixed a price band at Rs 195-207 per equity share, where investors can bid for 72 shares in one lot.
About 50% of the offer is available for allocation on a proportionate
