The stock of Vraj Iron and Steel debuted at Rs 240 on NSE, a premium of 16% to the issue price.
Vraj Iron and Steel IPO collected Rs 171 crore from investors. The IPO had an entirely fresh segment of 8.3 million shares. It was opened to investors on June 26 and bidding ended on June 28. The allotment was finalised on July 1.
About Vraj Iron and Steel
Vraj Iron and Steel is in the business of manufacturing sponge iron, M.S. billets, and TMT bars under the Vraj brand. The company benefits from two strategically located manufacturing plants in the mineral-rich state of Chhattisgarh. This advantageous positioning helps VISL reduce transportation costs and improve logistics management, thereby enhancing profit margins. Additionally, the company is expanding capacity at its Bilaspur plant, which is expected to impact both revenue and profitability positively.
Price Band
The company kept the IPO price band in a range of Rs 195 to Rs 207 per equity share. A retail applicant had to bid for at least one lot, containing 72 shares valued at Rs 14,904.
Choice Broking on Vraj Iron and Steel
“At the higher price band, the company is asking for an EV/Sales multiple of 1.0x, this valuation appears to be discounted compared to its peers average. Looking ahead, the company is well-positioned to sustain its growth trajectory through planned expansions and the enhancement of its captive power plant. These initiatives are expected to enhance cost efficiency and drive profitability growth and thus, we recommend a “Subscribe” rating for this issue,” said Choice Broking in an IPO note.
BRLM and Registrar
Aryaman Financial Services was the book-running lead manager of the Vraj Iron and Steel IPO, while Bigshare Services handled the work of the registrar for the issue.
