Vraj Iron IPO shares to make stock market debut on Wednesday; Here’s what to expect

Vraj Iron and Steel is set to make its Dalal Street debut on Wednesday, July 03 and the company is set to deliver a strong listing pop to the investors even as the grey market premium (GMP) has taken a hit in the last few hours. However, the muted sentiments of the listed markets may dent the prospects for the company.
 

A day before its listing, shares of Vraj Iron and Steel were commanding a grey market premium of Rs 67-70 apiece, suggesting a listing pop of 32-33 per cent to the investors. However, the GMP stood at Rs 75-80 apiece, when the issue was closed for the bidding.
 

Vraj Iron & Steel has generated a strong grey market premium of Rs 67, a staggering 32.37 per cent above its issue price. This surge aligns perfectly with the extraordinary subscription of 126.36 times, showcasing immense investor confidence in Vraj Iron & Steel’s potential, said Vraj Iron & Steel from Shivani Nyati, Head of Wealth, Swastika Investmart.
 

“The company’s financial performance paints a positive picture. Vraj Iron & Steel has a proven track record of consistent profitability over the past three years, demonstrating its ability to generate healthy returns. The reasonable valuations coupled with strong fundamentals, impressive subscription, suggests a good listing with significant gains for early investors,” she said.
 

The IPO of Vraj Iron and Steel was open for bidding June 26 and June 28, where it sold its shares in the price band of Rs 195-207 per share with a lot size of 72 shares. The Raipur-based company raised 171 crore via its primary offering, which entirely included a fresh share sale of Rs 82,60,870 equity shares.
 

The issue was overall subscribed a stellar 119.04 times. The quota for qualified institutional bidders (QIBs) was booked a stellar 163.90 times The quota for non-institutional investors was subscribed 208.81 times. The portions reserved for retail investors saw bidding for 54.93 times during the three-day bidding process.
 

Vraj Iron and Steel has shown positive results thus far and is optimistic about continuing this trend after expanding. It is rapidly expanding to keep up with the growing demand for its products, with all expansion plans expected to be operational starting in the first quarter of FY26, said Amit Goel, Co-Founder & Chief Global Strategist, Pace 360.
 

“The issue appears reasonably priced based on the FY24 annualized earnings. We expect a listing at around Rs 275-285 per share, resulting in a listing gain of around 33 per cent,” he adds.
 

Vraj Iron and Steel, incorporated in June 2004, manufactures Sponge Iron, MS Billets, and TMT bars under the brand Vraj. The company’s product portfolio comprises offerings such as Sponge Irons, TMT Bars, MS Billets, and by-products Dolochar, Pellets, and Pig Iron, which cater to a mix of industrial customers and end-users.
 

“Vraj Iron and Steel received strong demand from participants across categories. We expect shares to list at a premium of about 35 per cent to its issue price of Rs 207 per share,” said Parth Shah, Research Analyst at StoxBox. “We have a positive view on the company and advice participants who have been allotted shares to hold it from a medium to long term perspective,” he said.
 

Brokerage firms were mostly positive on the issue, suggesting investors to subscribe to it. Aryaman Financial Services is the book running lead manager of the Vraj Iron and Steel IPO, while Bigshare Services is the registrar for the issue.  Shares of the company shall be listed on both BSE and NSE.