Vraj Iron and Steel IPO booked 1.5 times so far on Day 1. Check subscription, GMP and other details

The initial public offer (IPO) of Vraj Iron and Steel, which opened for subscription today, has been booked over 1.5 times so far on the first day of the bidding process.


Retail investors are driving the demand with a subscription of 2.6 times, followed by non-institutional investors, whose category was booked by 1.10 times. The part reserved for the Qualified Institutional Buyers (QIBs) has not witnessed any subscription yet.


The IPO comprises only a fresh equity issue of up to Rs 171 crore.

The company proposes to utilize 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 and Steel IPO GMP

In the grey market, the company's shares are trading with a premium of nearly 12% today.

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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 the price band at Rs 195-207 per equity share, where investors can bid for 72 shares in one lot.

About 50% of the issue will be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs), 15% for non-institutional investors and the rest 35% for retail investors.

Other details

Chhattisgarh-based Vraj Iron and Steel is engaged in manufacturing of Sponge Iron, M S Billets, and TMT bars under the brand Vraj. The company currently operates through two manufacturing plants which are located at Raipur and Bilaspur in Chhattisgarh spread across 52.93 acres.

As of March 2023, the aggregate installed capacity of its manufacturing plants was 2.31 lakh tons per annum. Its product offerings such as Sponge Iron, TMT Bar, MS Billets and by-products Dolochar, Pellet and Pig Iron cater to a mix of customers that consist of industrial customers and end-users.

Aryaman Financial Services is the book running lead manager (BRLM) for the IPO.

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