The IPO of Vraj Iron and Steel includes only a fresh issue with no offer-for-sale component. The company will use the issue proceeds for expansion project at the Bilaspur facility and general corporate purposes.
Raipur-based Vraj Iron and Steel Ltd. will raise ₹171 crore through its initial public offering (IPO), which will open for public subscription on Wednesday, June 26. The three-day initial share sale will conclude on Friday, June 28, while the bidding for anchor investors will open later today.
According to an exchange filing, the metal manufacturer allocated 24,78,259 equity shares to anchor investors at ₹207 per share.Ahead of the issue opening, the company’s shares are trading at a premium of ₹53 in the grey market today.
The grey market is an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the GMP to get an idea of the listing price.
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, according to a circular uploaded on the BSE website.
Vraj Iron and Steel has allotted 24,78,259 equity shares to six anchor investors at Rs 207 apiece, aggregating the transaction size to Rs 51.30 crore, it added.The Rs 171-crore initial public offering (IPO) is entirely a fresh issue of equity shares with no offer-for-sale component.
According to the filing, no mutual fund has applied through any scheme for any of the 24,78,259 equity shares allotted to the anchor investors.
Volrado Venture Partners and Ashika Global Securities got the most equity share allocation at 48.74 per cent and 12.28 per cent, respectively.
The company will use the IPO proceeds for expansion projects at the Bilaspur facility and general corporate purposes.Raipur-based Vraj Iron and Steel is into manufacturing sponge iron, MS (Mid Steel) billets, and TMT (Thermo Mechanical Treatment) bars.
After implementation of the expansion project, the company expects to increase its aggregate installed capacity from 2,31,600 tonne per annum (TPA) to 500,100 TPA and captive power plants’ aggregate installed capacity from 5 MW to 20 MW, the RHP noted.
Vraj Iron and Steel IPO: Steel maker raises ₹51.29 crore from anchor investors ahead of public issue
2 min read 25 Jun 2024, 10:43 PM IST.
The Chhattisgarh-based manufacturer plans to use the money raised from the IPO for its operations and expansion plans, as well as to fund the expansion project at their Bilaspur site.
Vraj Iron And Steel serves both industrial and end-user clients with their product lines of TMT Bars, Sponge Iron, MS Billets, Dolochar Pellets, and Pig Iron.
